The New York Herald Newspaper, January 20, 1856, Page 3

NEW YORK STATE CANALS. Annual Report of the Aucitor of the Canal * vepartinent, Srarz or New York, Canat Deparruenr, ALBANY, Monday, Deo. 31, 1855. ‘To tne Hon. Commissioners OF THe CanaL Funp: In compliance with the requisitions of the sta- tute creating the office of Auditor of the Canal De partment, and vesting the Auditor with the powers and duties of the Comptroller in relation to the ca- pal cxrent his powers aud duties as Commissioner of the Canal Fund, and in accordance with the , course hitherto pursued of submitting a statement of the operations of the last fiscal , aud an esti- mate of its revenues and expenditures for the pre- sent, together with such a peering if any, as may be deemed necessary for the improvement aud ma- nagement of the revenues, the following statement and repoit are respectfully submitted:— On first day of October, 1854, there was be- longing to the Canal Fund on hand $3,558,071 25, > vizi— - Deposited in banks......... fe thse HEY $3,218,282 46 Invested securities in custody of the is +» 145,726 08 194,062 71 - $3,558,071 25 7,175,923 68 Wow esiniesdeceier svc ccotenad $10,733,999 93 ‘The payments of the year, as shown in accompa- uying tables, have been $7,547,279 64. Balance on hand at close of fiscal year... . $3,186,720 29 Of this balance there was deposited in banks... .$2,°46,931 50 Invested recurities in custody of Audtor, 145,726 03 hss from the Treasut 194,062. 7 . $3,186,720 29 Th ». this report, enu- noms the several sources from which the above rec have been realized, and ‘the purposes for whieh the several payments have been made, render- in; LOY da of them in this place unnecessary. Nos. and 3 of the documents accompanying this report are statements of the receipts, payments and condition of the sinkirg fund prov! deg for by section 1 of article 7 of the constitution, and, which, for the Ce dis.inction, is designated as “ Sinking Fund 0.4 Nos. 4 and 6 of such documents are statements of Uke character relative to the Sinking fund cpviged tor by section 8 of article 7 of the constitution, de- signated as “Sinking Fund No. 2.” From these statements it will be seen that the bal- ance.on hand belonging to these Sinking Funds on the 30th September last was :— Sinking Fund No.1... 71,383 11 Sivking Fund No. 1....... 79,079 40 $451,662 60 There is a deficiency in Sinking Fand MONOD LS cc. cc .ccemaa Ts 211,274 62 To pay interest already accrued to be supplied frem loan on the credit of the Sinking Fund, under sec.3 of art 7 of the constitution, aud sec. 3 of of Sess. Laws of 1855, . en supplied,will make a to- tal belonging.to both funds $662,637 42 Of this sum, $243,888 34 is for the pay- ment of stock that matured prior to 30th September last, but which was outstanding on that day, though it ceased to carry interest ut its maturity. The reve- nue having been insufficient to meet the demands of the Sinking Funds for the payment of interest and redemption of principal, there was paid for interest upon loans prior to Sept. 30, $211,274 12 from En- largement Fund, which is to be replaced by loan upon the credit of the Sirking und, and comes from the «bove sum of $062,637 42, and will leave, as the balanco of said Si g Funds, on the 30th September, the sum of $202,470 26, of which there belongs to Sinking Fund No. 1, $127,499 77, and to Sinking Fund No. 2, $79,979 49— $202,479 26. REVENUES AND EXPENDITUKES OF TAK FIFC AL YEAR. The revenves of the State canals and the expenses of collection, superintendence aud ordinary repairs for the last fiscu! year have been as follows, viz: — Receipts. From tolls, rent of surplus water, and interest on current caual revenues. . $2,639,792 12 Payments. For repairs on the canals, viz:— To Superintendents of Re- pairs. $788,751 42 To Canal Commissioners.. 82,279 52 For collection of tolls, viz: By Collectors, By Weighmaste: For refunding tolls, p ing, salary of Auditor and clerks of Canal Depart- ment, and miscellaneous payments Surplus revenue. $1,660,000 00 ~ Amount ret apart by the constitution as a sinking fund to pay the interest and redeem the principal of that part of the debt called the Canal debt............. $1,300,000 Of that net of the debt called the General Fund debt. 350,000 > eg PAS Ay Cay OTE $1,650,000 The foregoing statement shows a deficiency in the revenne to meet the demands of the constitution for an appropriation therefrom of $200,000 in aid o the general fund for the support of government. In anticipation of this deficiency, the payments to this fund have been withheld @ increased amount of $400,000 required by sec. 1, art.7 of the constitution, to be set ppart the present fiscal year for the Canal Debt Sinking Fund, making the sum of $1,700,000, instead of $1,300,000, as heretofore, venders it neces sary #till to withhold any payment to the general fund for the pros of goverument until the close of the year shall have developed whether the reve- nue. will justify such payment EXPENDITURES FOR REPAIRS BY CANAL COMMISSION- 38,584 40— 989,792 12 ERS. This item of expenditure for the Inst fiscal year,as shown by the preceding statement, has amounted to the sum of $82,279 82, which is a large diminution of expenditure under this head from avy former year ser 1849, as will appear from the following state- ment :— Year ending Sept. 40, 1849, the amount wa Year endirg Sept. 50, 1850, the amount w Year endit t. 20, 1861, the smount ws Year endit t. £0, 1852, the amount was, Year end'pg Sept. £0, 185%, the amount wa Year ending Sept. 90, 1854, the amount war .. . Year ending Seyt. £0, 1855, the amount was, The difference of expenditure under this he2d during the last fiscal year and thet immediately pre- ceding, as shown by this statewent, ly $30,061 55, or nearly one-half, and is truly gratilying, as 80 far as is known to the Anditor no detriment to navigation has resulted therefrom. The reasons for this differ- ence can be more appropriately sct forth by the Commissioners themselves in their annual re- 80.677 81 m port than by the Auditor. The diminution in the amount ‘expended by yerintendents for re- ae Ee $180,617 02 Repairs by Commissioners 80,061 55 Meking a total of........... soe. $260,675 67 Less expended the last than the preceding year under these heads. The amount expended for the collection of the re- venue exceeds that of the preceding year, and is as follows :— en By Collectors....... ee TB, Same items for preceding year. . 20 By Weighmasters.. . 0,846 29 542 93 Showing an increase of. $4,303 36 In the amount set down to collectors is inshided their compensation, the compensation of clerks and of inspectors, and all the expenses of their offices. The Auditor is clearly of the opinion that the num- ber of collectors’ offices may be reduced without any detriment, and a saving of expense be effected thereby. The whole amount received at a few of thé collectors’ offices ia insufficient to pay the salaries and expenses of the office. Such offices way certainly be dispensed with with benefit to the revenue. At some other offices the amounts collected are but very little in-excess of their expenditures. Most, if not all, of this class may be abolished with advautuge to the revenue. TOLLS UPON RAILROADS, That the Legislature has the ha to prescribe the terms and conditions upon which railroads may exercise the franchises it has granted them, the Auditor entertains no doubt. The qnestion relutive , to-the imposition of tolls apon property transported upon railroads is not, in his judgment, one of power, -but of expediency. The State, having expended large sums of money and incurred heavy liabilities yet uncancelled in vhe construction of navigable -channels for the benefit of all classes of its citizens and by the means of which all are benefitted, though in unequal , the laws of self-protection and self-precervation require its legislation to be such as shall prevent the loss or material injury of this large investment. To authorize by its action, aud permit -or allow with its sanction, where it has the right to restrain such competition and rivalry ast) prevent the canals from paying the interest’ upon aud can- -celling their ness by means of their reve- nue, and thus compel a resort to taxation oppressive to all, would be manifestly unjust and destructive of those equal righte of ita citizens which it is the mount di of the government to protect. ere the benefit — reaulting from the ca- nals equal oo to os citizens of the State, he taxable property, a resort to Freleon to their cost of outetrustion or improvement would be less objectionable, but could not then be defended, if that resort was rendered necessary b reason of ipl yd conferred upon a Pond me wotatiiegse Lgisnt ta authos in Id not ive acts authorizin; the construction of raHroads and transportation a property, which brings them in competition with canals constructed by the State, confer Lodged apon the corporators, 80 far as revenue of f! NEW YORK HERALD, SUNDAY, JANUARY 20, 1856. corporation is concerned, from which other citizen are necessarily excluded; bence it must that tax upon the property ot the whole State, ren- dered necessary by reason of such privileges, 18 u~ just aud indefensible, as being a burden borne by ‘all for the benefit of a portion only, Equally anjust would it be to impose a tax upon the or business of any corporation to liquidate canal debt, except in common with all the taxable proper- ty of the State, unless the necessity of such tax is created by the acts of the co or the )0- rations taxed. But if by their own action a necessity is created for a resort to other means for the final extinction of the debts of the canals than their own revenues, thea the actors Gey that necessity should bear its burthen, as a just and Consequence of their acts. Taxation upon the whole Bropes gicl the State, in any form for the liquidation of the ca- Tift tnet wal greta atic t revenue will pi qui tion—an secumDae entirely at variance with all the experience of the and prospects of the pre- sent. time within which that debt be finally and entirely liquidated can be of no witicular moment, so long as their revenue 4 sufficient to preserve intact the faith of the State, which hes been . and continue to furnish such a surplus over interest and expenres as to put beyond reasonable contingen- cy the fact of its final liquidation from that sour.e. Fosterity even could not reasonably complain at re: ceiving such a be ed as the canal system of the State, though sul to some of the payment of the cope af Se Ry gene eagen ea ne Po mavens at ample for that purpose, and yet it is no! rity, but the resent generation, ure to witness 3 final extincion, if any confidence can be placed in the future being as productive as the past. If these sitions are sound and defensible, as they are be- Hevea to be, the only Leaps to be settled, in order to determine the propriety and justice of imposiag tolls property transported upon railroads is, have they by their action under the privileges Seanted by their charter, rendered a resort to taxa- ‘ion for the liquidation of the canal debt necessary / It is shown in another part of this report, under the head of “Sufficiency of Canal Revenue to Pay the Canal Debt,” that even with a revenue equal only to that of the last fiscal year,and without any far- ther increase thereof than ia sufiicient to meet the in- terest of the $4,500,000 yet to be borrowed, aud without any reduction of expenditares for collec- tion, superintendence and repairs, the entire dobt, with its authorised additions, may be cancelled ia les, than twenty-three years; and unless the facta and the reasoning under that head are entirely fallacious, no resort to taxation for the payment of the Canal debt is necessary, the revenue of the canals being sufficient for that purpose. ‘That the railroads have carried freight, which, had they not been allowed to carry it, would have gone by canal and paid toll to the State, is jueationable; but whether they have taken more freight from the canal than they have cansed to be brought to and transported upon it, is a question not so easy of 60- lution, and must to a very great extent be a matter of conjecture, froma want of factsfrom which to determine it. Be this as it may, itis fairly assum- able that forwarders of freight do not cause it to be transported by railroad merely, nor mainly that the revenue of the company carring it may be enhanced, nor yet from hostility to the canal navigation, and with a design to impair its revenues, but because it is believed to be for the interest of the shipper, the preducer or consumer, or all combined, and that the public, so far as they resort to that method of trans- portation, do 5 for the reason that they are bene- itted thereby—the same reason that prevails when canals instead of railroads are resorted to for the transportation of property. From all the investiga- tion that the Auditor has been able to make of this question, the conclusion at which he has arrived is that there is no such necessity existing which has Leen created by the action of railroad corporations as to justify the imposition of tolls upon property transporte vpn railroads for the benefit of the capal fund. Whether any necessity exists for snch au imposition for the benefit of the general fund is a question belonging to the Comptroller and not to the Auditor to discuss. The main and ftrongert position for the imposition of tolls upon prepeity transported upon railroads for the benefit of the Canal Fund is understood to be that the con- stitution has imposed upon that fund the duty of pay & certain sums within a given period, which, with its eG revenue, it is unable to do; and that therefore, inasmuch as railroad transportation diverts from the canal property that would be other- wite carried upon it, and pays tolls to the State, such p-eperty should be subjected to the payment zf toll the same as though it went by canal: Waiving all question as to how much or how little of the proper- ty transported by railroad would be carried by the canals it not by railroad, and all the difficulty of discriminating upon this principle as to what should te subject to toll and what exempt, also the inquir- ing whether the railroads are anywise in fault for there constitutional requisitions, it is reepectfally submitted that this argument overlooks pehirens the fact that the constitution has itself provided other means for meeting any deficiency that may occur, and therefore the imposition of tolls upon railroad transportation is a departure from the means provided by itself. Should competitions by railroads, thereby diverting freight from the cauals, ke carried to such an extent at any period in the futnre as to cause the canal revenne to be reduced below a poist sufficient to meet expenses and interest, and furnish a reasouable surplus for a sinking fund to extinguish the debt, the necessity will then have arisen by railroad action for the adop- tion of protective measures, and upon _priuciples ulready stated, the Auditor would in auch an event uphesitatingly recommend the imposition of such tolls upon property transported upon railroads as should be sufficient to secure an amount of revenue adequate to the extiction of the debt in a reasona- ble period; but to impose such tolls in anticipation of such necessity, under circumstances so strongly indicating the unlikelihood of its occurrence, cau neither wise nor just. To merit and acquire by the imposition of unnecessary toll upon the transporta- tion of property, a reputation similar to that now Lorne by our sister State of New Jersey, caused and zequired by a similar imposition upon persons car- ried upon her railroads, is not such a condition as the Auditor can recommend in this report. ¥ OF THE CANAL REVENUE TO PAY THE CANAL DEST. c lebt, paying interest on the 30th Sept., Gneluding $1,500,000 of canal revenue cert ») Was $18,731,109 16—hearing an annual in- erest of $1,019,790 29. Of this debt $2,814 6 ed in the fiscal y i the same year 0,000—leaving: th interest on the 20th Si the intel The seven Cost of collection, euperin SOPAUP. 6 perce needy res Jntcest upon caval debt, $676 over interest and expenses, ap- ‘0 payment of debt. . ally set apart io er ext of five per cent per an- y, will in nineteen years aud 8 amount to a stm more than sufficient to extingnish the present Canal debt. If to the debt three q of $39,666,289 $2 there be added the sum of $4,500,060, remaining on the 30th of September last, to ke borrowed under Sec. 3, Art. 7, of constitution as amended, it will make an aggregate of $24,166, 2+9 82, and the time requisite for an annual invest- ment of $673,177 49, at a quarterly interest of five Faorcent per annum, to accumulate so as to ex- Unguish it will be extended to twenty-two years and a quarter—at which time the accumulated sum weuld exceed the debt in the sum of $152,581 61, as shown by the fol owing computation: — Jn this computation it is assumed that the reyenue of the prerent fiscal year (and for the future) will exceed that of the last fiscal year to an amount equal to the interest on the additional loans of $4,500,000, so as at all times to Jenve a met revenue or surplus, after payi interest snd cost of collection, superintendence ‘an Tepeirs, equal to that of the last fiscal year. That this asecmption is well founded is shown in another part of this report, where the revenue of the present fixcal yeor ig estimated at $3,100,000, which will give a surplus or net revenue over and above cost of coljection, superintendence and repairs, and inter est ona debt of $21,916,289 82, (being an addition to the present debt for the current fiscal year of $2,260,000, at six per cent,) of $911,177 49, or $335,- 0CO more than the net revenue of the last fiscal ear. From the 30th September, 1846, to the 20th “eptcmber, 1865—a period of nihe years—there has bcen paid from the canal revenues (without in- cluding anything received from tolls upon railroad transportation) the interest upon the canal debt, and all expenses of collection, superintendence and Jepairs, the following sums, viz:— Upon the principal of the Canal debt. $4,310,930 58 To the General Fund General Fund debt. ‘ - 4,550,000 00 To the enlar UT ion of the canals... . Making on aggregate in nine years ot Abievennes che shes tes UnbEbs 8 $12,892,530 06 er annum. For the last three railroeda have been exempt from the payment of tolls, the net revenue, after paying interest on the canal debt, and all expenses of co lection, superintendence and repairs, has been $2,- 695,497 73, or an ave! of $890,409 24, per annem, and this notwithstanding the unfavora- ble influences of dry reasons, short crops, competition from railroads, increased expenditures for 1epaira, and interest upon additional loans, most clearly evincing the sufficiency of the canal revenue to by hae the canal debt within a reasonable pe- riod if applied to that purpose only, and tho repay- ment of any loan that may be necess to meet a deficit in its enfliciency to cancel any of the present debt at maturity. Frais and inchadling the yoor Ltt / to the 30th September last, the Fund has re- ceived from other sources’ than its own legitimate income, as shown by statement No —,the sum of $9,198,573 79 from following sources, viz,:— From taxes. + uae 21 . 8, 652,226 45 $9,193,873 79 there has been Fund to the Ge- 4,137,602 73 . 3,271,916 66 pears sources than its own proper income, more than it has refunded, is $1,734,- 40 ; and if from this be dedacted the amount of railroad tolls which were it for the protection and benefit of the Canal Fund, the amount would be but $1,132,127 95, or a sum less than the net canal revenne of a single year. What other under- taking of magnitude in any commen- rurate with the canal system of this State has ever been begun and carried on so entirely and success- fully upon its own credit and itself 20 turban The credit of its Sinking Fund is or below par, $1,300,000 of 6 per ceat stock, ising or " oO cent stock, hav’ eighteen rears to run, and Based on the credit that Sinking Fund, has been taken in the face of a stringent money market, at a ee premiom, and as soon as taken is beld at an advance. Not y has the canal system of the State been thus self- sustaining and successful, but through its influence, the valuation of tip peope of the State has been quadrupled since 1817, and the same extent has enlarged the basis of taxation, to which resort may be had whenever the of governmentmay demand. Past results, as well as present indica- tions, leave no room to doubt but that, wisely and prudent! rare, the system must continue to ex- tend ‘and 1 suultiply its benefits, as well as discharge Ke peeraeay obligation, and remain to the State an unfailing source of revenue. OANAL DEBT SINKING FUND. The balance in hand belonging to the crane Fund under sec. 1, art. 1, (Sinking Fund No. 1) the constitution, on lst Oct., 1864, was. $933,551 23 1,328,000 00 Rec'd during y Pane ted) ——- $2,261,551 26 Payments during the year (statement No. 2)....... Balance on hand al 30, 1855...... $371,383 11 Teduct stocks due and outstanding on 248,883 34 that day and since paid Balanciien. ss ed. sevice $127,499 77 Required to meet debt maturing Jan. 1, ROOD an 5.ccacs viene es tmwariee Finis» 4,000,000 00 Decane in Sinking Fund No. 1.. .. .83,872,500 23 ‘The balance on hand belonging to Sinking Fund under sec. 3, art. 7, of the constitation (Sinking Fund No. 2) on the lst Oct., From this ment, it ap Fund has received from other WOE, WAB oie 66 v0. 0s:es.0 sme 49 $76,170 49 Rec'd during year ending 30th Sept., 1855, for in- VRC evo edd er siccdor aes $3,809 00 i $79,979 49 To meet the requirements of the constitution, there was needed as additions to this fand— For payment of inte:est on loans under sec. 3, art. 7 of constitution........ $211,274 82 For annual contribution for payment of principal of loans of 1854....... 76,170 49 For anuual contributioa for payment of enlargement loans of 1865 x 76,170 49 For annual contribution of loan for re: cemption of canal revenue certifi- cates... 50,780 33 Total.. $414,396 13 The canal ni 4 ficient to meet these sums, there is a deficiency in this Sinking Fund to that amount, making a total deficiency in the Sinking Funds of $4,286,896 36, which has been rovided for by a five per cent joan, awarded on the Ten December, 1855, of $4,500,000, on the credit of the Sinking Fund under sec, 3, art. 7 of the consti- tution as amended. PREMIUMS ON LOANS. The premiums received upon loans made in the fiscal year ending September 30, 1554, were stated in the last annual report from this department at pages 42 and 43, to have been as follows:— On loan awarded June 22, 54, Of......... pod este ea #1,000,000—$175,706 25 On loan awarded, August 31, TBSE, Olen ores one ssesen 1,250,000— 167,246 52 On the loans of the ast ‘fiscal year the premiums received have been on enlargement loans, as fol- lows:— On loan awarded February Ee ee ee $1,000,000—$131,380 05 On loan awarded June 21, 1855, of. 1,250,000— 234,500 00 On loan for the redemption of canal revenue certifica- tes, awarded June 18565, of. 1,500,000— 259,405 00 Making an aggregate of............. $968,237 82 Since the commencement of the present fiscal it the following loans have been made, viz.:— largement loan awarded ae 100 - $204,511 50 C4 Fund, awarded Dec. 18, 1856, for $4,- 600,000 (5 per cent loan) at a premium of. eee ‘1 20 Total of premiums. ... $1,204,730 52 The amount loaned under sec. 3, art. 7 of the constitution, as amended up to the date of this re- port, is $5,750,000, which has been tuken at a pre- mium of $913,342, being an average of a fraction over 15 88-100 per cent. The enlargement loans of the last fiscal Phe were taken at a premium averaging 16 26-100 per cent, evincing most clearly the public confidence in the credit of the State, utility of its canals, and their ability to cancel their indebtedness from their revenue; nor does it mili- | tate against this deduction to state that their being used as securities tor banking bgt ieww enhances their value, for the reason that it is their intrinsic merit and undoubted reliability which makes them 80 valuable, and causes them to be selected and used for that purpose. EXIIMATED REVENUE AND E3PENSES. The canal revenues for the present fiscal year are estimated as follows:— Fram toils from ailtbe canals - $8,100,000 From rent of surplus waters. . é 1,600 From interest on current canal revenue. . 5,000 TOG os as vin vive vss pinmenrvnes voibs dey . $3,106,500 By chap. 628, Laws of 1°55, the following appro- Ppriations have been made for the fiscal year :—For expenses of collection, superintendence and ordi- nary repairs of the public works, salaries of the Canal Commissior ers, State Engineer and Survey- or, the Auditor of the Canal Department, clerk hire, tnd incidental expenses of the Canal Department avd Canal Appraisers. . $200,000 00 For the payment of int v4 the principal of the Canal Debt, as it existed on the Ist day of June, 1846.1,700,000 00 For payment toward the Sinking Fund for the extinguishment of the eral Fand Debt............. LPs cdecy cess For the payment of interest on loans to be made under the constitution, for the enlargement ot the canals, or so much thereof as may be necessary... 460,000 00 For Sinking Fund under sec. 3, art. 7 of constitution sesees 279,291 00 bi ne mi agi neta sep avr pl is cppropriation was made before opportun! had been afforded to determine, or even to form an cpinion understandingly o3 to the effect of the sys- tem of peng Oey canals in repair by contract was to have upon the expenditure for that purpose. Th: experience of the season of nari ion, and the result of recent lettings, which will be reported by the Canal Commirsioners, are deemed to demon- sirate that the sum of $900,000, appropriated for collection, superintendence, repairs, «c., is at least £150,000 to $200,000 more ‘than will be needed for that purpcee, and in view of the results of the re- cent lettings the Auditor would respectfully recom- mend that the act relative to ig the canals in 1epair by contract be so amended as to authorize and require the letting of the uncompleted as well as the completed sectione of all the mavigable canals, and that the whole be placed under the control and supervirion of the Commissioners and Resident «n- gineers, under the belief that if this recommenda- tion shall be adopted, the sam of $600,000 Lr annt.m willbe found amply sufficient to cover the le cost of collection, superintendence and re- f all the canals. e ap) Dig meno for the fiscal year commenci: on the Tet o October, 1856, should be made in ad- vance of that period. Jn closing the report the Auditor desires to express the convi entertained of the ability of the canals, economically and judiciously managed, to defray, by ae of a own revenue, the a ty beg ees visicn and mana Mie goed e hal upon their debt curred an authorized, and within a reasonable con the debt itself, including such sims AB MA; equitably due from them to the ge- reral fund for advances from it for their original construction, if applied to those biped only; and tke equally strong conviction that if they are not so managed, or if their revenneg are otherwize applied, 350,000 00 be and sabjected to the payment of damages b i crap leghiaton! tad extra ailowsnce each as not ted as between individual’, the in- evit ble result, under the sharp competition ¢> which " oted for the trade, mast be ches, and’ taxation in same form to supply em. All of which is respectfally submitted. Wieath J. CORNWELL, Anditor of the Canal Department. Aduirs in Centxal Amertoa, El Rol, of San Vicente, of the 19th December, contains the following reply to an article of the Gaceta de Guatemala, of the 30th November, on the affairs of Nicaragua:— The article, in speaking of the introduction of some Americans into Nicaragua, seems at first sight to have been inspired by patriotic feelings; however it will not do to consider its professions apart from other antecedent circumstances. They must be brought in connection with certain precedents—the causes, not the effects must be looked to. We mus! inqvire how thoce who write now in this manner, haye thought, written and acted in former times, in cider to discover whether they condemn the act in iteelf, or whether they are not guided by rivalry and hatred towards those who prevent the enemie of the country from achieving its ruin. When th: Gaceta thinks that it has a right to charge the in- habitants of Nicaragua with {mbecitity for not hav- ing foreseen or avoided certain dauzera, to accuse them of want of patriotism because of their risking their independence, the inhabitants of Nicaragua have the same right to doubt the sincerity of the editors of the Gaceta when reviewing their former publishing these reflections we cannot flatter oureelyes that they will be well received amidst the great diversity of interest by which we are sur- rounded. Our object lies not in the hope of seeing our adversaries do us justice; like suitors in a court of justice, we do not aim at convincing our oppo- nents, but our judge—so we address ourselves to the publis of Central America. Everywhere, in private conversations and in soci- ety generally, the universal topic of interest is Ni ragua and the North Americans. All these discus- sions being of nearly a similar character, we content ourselves with introducing bere, by way of illustrat- ing our subject, the following dinlogue between a Honduran and aGranadian. The lattor being inter- rogated by the former as to whether he had read the article in the Gareta, aud his opinion in reference to it, answered:—‘‘ To be sure I have, and I found it cloguent, forcible and consistent; it has entirely bat me, not merely by its literary merit — of that Iam no judge—but because of its furious attacks upon the government of Leon for in- viting to the country Walker and those d-—d Yankees, whom we all abhor g0 much. How well it ceecribes the danger of losing our nationality! How sincerely it compares the right(ul conquest of this part of America just 330 years ago by the humane ond merciful Pizarro Almagro, Cortes, and the philosophic ard kind Pedro Alvarado, thoso men s0 much calumniated by their own countrymen, Solis, Herrera, Ercilla and the illastrions Bishop Las Catas, with this occupation by the Yankees, prophe- cied in the same article! What a charmin rophecy! It far excels those of Isaiah and Ezekiel it what fills me with enthnsiasm and consolation is the ardor it breathes against foreign intervention.” “And do you believe,” replied the Hopdaraa, “that those gentlemen say what they think and act as they speak’ Do yop believe that they really abhor the protection of foreigners, and that they do rot wich for intervention?” “1 do,” replied the Granadian; “if it were not so they would not print it in full in théir Gaceta, which pretends to be serious. I may sometimes be mistaken, or it may be sympathy which unites me with them in conformity with my own opinions and interests. Be this as it may, it pleases me, and I find it convenient to make them believe that they reason well; for you will not deny that axiom of the Jesuits to be an ‘excellent one—calumniare, calum- niare, siaud semper hacret. And for that reason I told yon that I have no scruples in di:crediting the party of Leon.” “T cannot conform to these wicked precepts,” re- ied the Honduran; “ man must speak trath—be rank and sincere; true policy is foanded on honor. T can cite certain acts of those gentlemen which put the sincerity and patriotism you concede them very much in doubt, as far as it regards their looking to the support and the protectorate of certain Euro- pean and monarchical governments. You see that in this there is not much consistency nor conformity with what they now wish.” “Yon are right,” answered the Granadian, ‘‘I shall confess the truth, since we do uot speak before the ublic, but between triends aud confidentially. You now me thoroughly and you are persuaded of my being incapable Il a falsehood. How can I shu my eyes to the evidence of facts? We Granadian have committed very many bad acts, though neve with a wicked intention; acts of which we now re ent as of our sins. One of them was that disastrous ecree we issued in Nicaragua, to solicit the protectorate and intervention of the Queen of England, which means nothing else than the abandonment of our rights to Great Britain, end the alienation of our Territory.. But what could we do, seeing that those gentlemen of the Gaceta deceived us through the medium of Mr. @hatficld? We feilinto the trap. The hatred with which they cunningly knew how to inspire us against the Yankees, on account of their republican institutions, sapied and adopted by all the govern- ments of Spanish America, did not contribute a lit- tle to this object. However, we did not fail to be aware of the »mminent peril by which our national sovereignty was menaced in consequence of this treacherous step; for we had heard of the destiny cf the East Indies, where England holds under her sway @ population of fifty-nine millions of inhabi- tants, treating them like slaves. We also knew that we had no conformity with the British in point of 1eligion, for we happily profess the Catholic Apos- tolic and Roman religion, and England the Protestant; her idiom differs from ours, her customs likewise; and to crown all, her government is monarchical. Bat what conld we do: We yielded to these treacherous suggestions as Eve did to those of the serpent. Therefore, when I refiect dispassionately, ad un- moved by party interest, I draw this conclusion, and say to myrelf:—If it were true that our mentors abhorred the ie deel of foreigners—it this hatred against the Leonese government of Nicara- gua ond the North Americans were the offspring of a just, liberal and republican spirit—we would not have delivered ourselves up tothe Emperor Itor- bide in 1822, nor would we have asked him for a troop of the imperial soldiers of Mexico, in order to lace ourselves under the orders of ilisola to at- «i San Selvador and to ovcupy it; they would not have driven Omoa to rebellion in 1832 by prociaim- ing the annexation of Central America to the crown of the King of Spain, for whoee overthrow the in- habitants of Salvador, Guatemala aud Honduras had ehed oceans of blood. They would not have instigated the inhabitants of Nicaragua to issue a dectee soliciting the protectorate of the Queen of England; they would not have argued in their official gazette with so much warmth to prove the conye- nience of once more, in conjunction with Santa Anna in Mexico, placing these countries under the heel of the Spanish monarchy, nor would they have resutcitated all the exotic ood of the absolute government of Spain in the times of the house of Austria, as, tor instance, in t he case of the real es- tatuio of its University, nor received oe orders, adorning their jackets with those monarchical trink- ets,&c. Therefore, if they haye done such things, we must conclude that they do not abhor foreign is tervention, (European or monarchical), but that they do abhor free institutions, republican castoms, and American friendship.” “There is force in what an say,” replied the Hoi.duan. “I thank you for your frankness, and therefore I should wish you to explain the réasons why the Gaceta speaks ‘of traditions, slavery, Eng- lish idioms, &c.”” “It appears to me,” replied the Granadan, “that thece phrases partake something of the character of threats, and something of that of rhetorical flourishes, put forth in order to make people believe in what the writers do not believe themselves. My OE ka the Lang press od by pola phi a ‘y ule, supported by public aut , the always wrile with the assurance of not being © et tradicted; for you remember the story of the Em et Adrian carrying the bees toa ap ic discussion, y ¢xclaiming, ‘Who speaks alone is always right.’ ” “ Those gentlemen, as politicians and as propiets, forerce much ; but I think that a few American citi- zens, belonging toa republic from which we have borrowed the free institations which govern us at present, would not be able, even if they wished to do +0, to change our independent and sovere! acta. For vern- ment. In Nicaragua, where its citizens feel stronger atachment to their own conntry than those gentlemen of the Gaceta of Guatemala, the people have a posi- tive interest in preserving their independence, being independent by conviction, and not by accident. The examples of Texas and California are in no wise ap- licable to us. Texas wasa frontier territory of orth America, and was already, in the time of the Spavish government, a colony peopled orth Americans; as to California there were particalar and exceptional circumstances in its case. If there had been any danger it would have been for the State of Salvador when it was invaded by the imperial troo, of Mexico and Guatemala. gan of thi State, directed by en eminently liberal, trne friends of indepen and of honorable character, issued the famous decree of the 22d of De- cemler, 1822, whereby this terri was annexed to the confederation of the United 3; and they did not think to ruin themselves, bit rather to rave their country. You know very well that Don D. Matias Del was the oracle of the inhabitants of Salvador on account of yd tegen his christian charity, his learning and integrity; a9 was-D. Manuel Jose Arce, one of the first insurrec- tioniats, Dr. Canas, &e. You have only to look in the Nuw Yorx Hexaup, No, 6530, if you have auy doubt about it. If, then, in spite of such a decree, independence did not run'any , why should it do so now, when nobody speaks annexation ‘"’ “You are right, then,” replied Honduran. “Then hear me for a moment longer,” continued the Granadian, “‘and all will be said. If our conser- vatives abhor the Yankees, it is not because the: are strongers, but on account of the bad example their has given us—oor [4 from them in an unincky ho thee repabie laws, | It is their fault that yee ae find our- elves entangled in this pernicious labyrinth of elections im order to change and renew ricdically our authorities, this being so different amonarchical regime, where one alone com- mands. We detest them for having perverted our people by making them believe that the liberty of he print press, invented to the dis; of ane kind, Guttevberg, is a popular right. An- | by Ji other of those enormities which we shall never re- gard with a favorable eye, is that composite and fan- | ciful thedry, which the republicans eal! “ the rights | and guarantees of the citizen,” 50 much opposed to | the “code of the holy office of the inquisition,’ drawn up by Lacero, Torquemada and Valdez. If we look at tioke principles called ‘ natural, political and civil eg who would be able to bear even the mention of that pernicious doctrine? Moreover, they had the foolishness to copy in their so-called constitution, these and a theusand other things. Have we not, therefore, a right to hate those Yan- kees, knowing that the constitution which go- veins us, and which our legislators made us swear to and and observe is nothin but the faithful copy of that of their own Union? The first article of ‘that of Massachuretts declares all men to be born free, &c.; that of Virginia sa that all authority draws its ora from the people. The 20th article of that of Maryland declares all privileges to be odious. The Sth’ article, firat part, of that of Massachusetts prohibits and condemns all hereditary titles, &c. ‘The 1th article of the consti- tution of Pernsylvania blasphemously declares : “ Aristocracy is but a nuisance: neither titles of no- bay nev hereditary honors can be conferred.” In speaking of slavery the constitution of Delaware, in he 26th article, says literally ; “ No person import- ed into this State trom Africa shall be hereafter kept in slavery under any pretext whatever: no slave, ne- gro, Indian or mulatto, shall be introduced into this Btate from any part of the world, in order to be sold here.” But what no sensible man, no gentleman, is able to bear, or even to hear, without being irritated against the United States and the Yankces is, that their laws d) not allow offices to be made perpetual, and shuts the door upon a meature 80 advantageous as that of rendering the office of President irresponsible and to be held for life. Doea it not appear to you barbarons and fool- ish to change every two or four years the President, and huaiiliate him to the extent of compelling him to give an account of his conduct before an assem- bly? Santa Ansa in Mexico acted well in Sopra the republic, celling the territory, enriching himself at the expense of the people, creating the order of the chivalry of Guadalupe, re-establishing titles, de- corations and monarchical dignities, and calling back the Jesnists in order to support him. His court recembled in miniature that of Carlos V.; he had extended his plans to the neighboring States and made the proper arangementa toexecute them; but his time had come and his project ended like that in the fable of the milkmatd. “Ihave listened to you with pleasure,” said the Honduran, “‘and should wish to prolong our conver- ation, tut hoping to do so another time, we will ad- journ it for the present,” “As you please,” replied the Granadan, “but recollect that neither you, I, nor anybody else can forecee the future ~ or control ‘circumstances, whatever they may be; it is not given to man to stem the current of events. The world runs its course, directed by the finger of divine providence, the only wise, the only just, and the only real arbiter of our destiny.” REPUBLIC OF NEW GRANADA. IMPORTANT CIRCULAR FROM THE SECRETARY OF. STATE FOR FOREIGN AFFAIRS. Boaora, Dec. 4, 1885. To THE CONSULS AND COMMERCIAL AG&N1S OF THE KEPUBLIO IN ForEton CountRims:— In spite of the protracted agitation following upon the elections, peace and legal order have been preserved in New Granada without interruption, and have a tendency to consolidation in conse- qvence of the unlimited liberty of discussion allow- ed in regard to all matters of public interest; of the absence of all party spirit in the public functiona- ries; of the establishment of municipal government in all the territorial sections, and of the Fat Sows of industry everywhere. The citizens and inhabitants of the country are not divided by any one political, eocie! or religious question There is no indiyidual with sufficient influence or means of action to insti- oe him to promote disorders or defy the laws. No- y is annoyed or pereecuted for political offeacea; the greatest part of those implicated in the Inst mili- tary insurrection of 1864 axe now living in tranquil- lity with their families. Our relations with forei powers and the neighboring republics are of t! most pacific character. The official gazette is at i nt publishing th» transactions of the provincial Legislatures, relati to the question of confederation. Although a deli- cate one, it is, in contradistinction to the other South American republics, with us but a final question of the improvemeht of our system of administrative decentralization, begun in 1848, ratified by the con- stitution of 1853, which introduced with rull success into the poo the municipal régime, and farther extended it by a law ofthe present year. There is in the Legislature a matory in favor of confederation; it is therefore probable that the Congress of 1856 will directly address itself to the national will, by issuing a decree for the convocation of an Assembly authorized to reform the constitution in a federal senee, if it deems the time opportune for it. One of the beneficial consequences of the con- siderable reduction effected in our standing army, was to bring back to the productive classes a number of our citizens who now devote themselves to useful e8, industrial pursuits and commercial spe tions. In the meanwhile our provinces or- ganize their sig guards—a patriotic, numerous and flourishing militia, upon whose services the government can rely in any eventuality that may occur. The reccipts of the treasury in cash continue to be very limited, in consequence of the large amortiza- tion of the credit Dilla, by mevns of which taxes and other obligations to the State are paid; bat on the other bane all the sources ot revenue are improving, not being loaded with unnecessary expenses or onerous contracts, und will soon be exempted from the transient disturbances caused by recent painful errors aud deplorable events. The chorographical, geological and statistical Jebors in which the Commission presided over by the skilfal engineer, Mr. Codazzi, has been engaged for the last five years, have already furnished maps of somewhat more than half of the territory of the republic, with the corresponding descriptions, and are pursned without interruption. Another engineer in the service of this country (Mr. May) has juat been entrusted with the exploration and Yepographi- cal Gescription of the Sierra Nevada of San! ar ta—an extended and fertile district, the best adapt- ed to foreign colonization, because of ita contiguity to the coast of the Atlantic, and its mild tempera- tore and productive soil, where, in all probability, amongst other natural iiches, will be added well titvated coal mines, for Moore | the steamers of the Atlantic and those of the Magdalen river with the necessary fuel. In speaking of steamera, I deem it necessary to advise Consuls in Enrope and in the United States, that for the navigation of the large rivers of Magda- Jen and Atrato, as well as for the coasting trade on the Atlantic and Pacific, the steamers actually in service and those expected from abroad are no longer sufficient. As the importation of foreign goods for the consumption of two-thirds of the republic is carried on by the Magdalen river, and as this is the principal channel of exportation, which is rapidly increasing, especially in tobacco and chinchona, the demand for transport ships is becom- ing very considerable. We have continually enor- mous accumulations of detained cargoes, these: delays, in c’ nnection with the frequent averages oc- casioned by the overlading of the ships, are very: injurious to commerce. ‘Our Jaws perrait to all flaga, on terms of absolute equelity, the coasting trade, or trade from port to: port, in fruits ot the country or of foreign produc- tion. We likewise exempt from differential duties. navigation on the rivers and interior lakes by steam- ships of every nationality. Therefore all ‘lines of stevmers which may be established for one or the other service can freely compete, anda num- ber of transport ships of this kind will always mee* with cargoes and pagren; In the Mi river steamers of little draught, but of sufficient power, would likewiee find constant occupation as towboats and ent pee might introdace or con struct here flat bottomed luggers to be towed from port to port. T expect that the agents of the the present cirenlar is addreseed, communicate its contents to the ublic, to whom find means to iblic. INO DE Popo. FINANCIAL AND COMMERCIAL. MONEY MAREE®S. Sarvepay, Jan. 19—6 P.M. The tencercy of prices this morning was upward. At the first board, Indiar: dvanced 4; per cent; Erie 2a Mortgage Bonds, %; ware and Hudson, 4; Michi- gen Southern, ?;; Pennsylvania Coal, 2{; Cumberland, 4g; Erle, 4; Reading, %; Cleveland, Columbus and Cin- cinnati Reflroad, 3; Milwaukie and Mississippi, 1. Nica- ragas Transit declined 1 per cent; Cleveland and Pitta. buzg, 1. Galena pnd Chicago oki this morning at 110 3 Sen Fer ceat for the opening, and 111 per cent, bayer 30 days. Milwaukie and Missiscippi was in demand at 86 per cont cerb, but very littie stock is in the market, and the re}Ad advance makes no impression on holders. They show ther cense in holding on. It is the cheapest atook on the Mst at current prices. Erie was firm at the slight improvemert, Cunberland was active, without much charge in prices. Nicaragua Transtt sold down to 225y per cent. There were not many operators. At the second board some stocks were better. Nicara- goa Transit advanced % per cent; New York Central, i. (alens] aod Chicago fell off 44 per cent; Reading, 4; C.eveland and Toiedo, ig. There were two lots of 6@ +bares each, of Milwaukie and Mississippi Railroad sold this afternoon, S0at 86 per cent, buyer 60 days, and 60 at 85 per cent cash. While there is so little of this atook im the market the operations must necessarily be Mmited, ‘The openir gof the Frie and Wabash railrond from Toledo to Fort Wayne will give prominence and activity to the stock and securities of that company. As fast as new links &re completed the cars will be put on, and in a fow months ‘we shall have the whole route in full operation. This is ne cf the most important Jines connecting Lake Erie with ‘the interior of Indiana, avd forming the mein trunk road tont. Louis. It epens a well popu'ated and highly cultl- vated rectiou of country, and gives an outlet which must add lergely to its production. It is in good hands and well mansged. The annexed statement exhiiita the value of foreiga dry goods entered at this port for consumption, for ware- hotre, and also the withdrawals from warehouse, during the week engiog and inoluding Tharaday, January 17, 1856:— MovEweNTS Ix Fornicy Dex Goons. Entered for Consumption, Withdrawals. Wo Manof's of Wool... $350,742 $62 407 $17,258 136. 121,851 69,011 49/686 37,506 45,217 13,264 26,714 30,888 Totals..,....,.81,686,471 $805,904 $107,378 Value pat on the market durirg the week... $1,042,495 As the season advances, and the means of interc>urse #0 seriously iuterrapted by the Jate heavy snow storms become re-cpemed to travel and transportation, # car- responding augmentation of trads im dry gooda will fol- low. Already, with the milder state of weather which has supervened, increased animaion has occured, and the close of the present week presents a seene of more activity than the corresponding period of the woek or two previous. The collections fr. the iate:ior ace also coming in more satisfactorily, and, taken altogether, the senacn Opens with favorable prospects for the J bing im- terest, The business, though giving tokens of more ee- tivity, is yet transacted on s rather mode ate scale, aa buyers have not yet appeared in force, ond sellers are im no bursy to press sales, We refer to the present mar- ketable value of the flowing: — Dommmc Goops.—The stock of desirable qualities of brown sbeetivgs and shirtings is held with more firm- ness, though the demand for home use and expert con- tipues to be limited. Backed Shectings and Shirtings —The market was dull and the demsnd lignt; jobbers were pot disposed t> relax their prices, especially for the best known producti being sastaiaed by the firwre:s maintained in unb.ea gow Colton Duck centinues steady, with the prospect of im- crexsec demand and firm prices for the future. Brille —Hevers are firm, at 8c. for brown, 8&0. for e. for blue, with a fair demand for the Corect Joane.—-Mackot quiet, while prices remalm atendy. Cnaturgs were in moderate demand, whi'e prices re- ed stead, Stripes and Uicke.<-There is more activi'y in stipes, with sume better demand, alao, for ticks, and prices for both were firmer. Printing Coths continned firm, but the market {3 not 8 yet vory active. Sales to a fair extent have been mada at full raves, Frints.— The busivess is moderate, but there isa fale demand for the new spring styles. Lawns,—the fresh styles are not plenty, while there ts a better dimand, with more doing, chiefly with Southem merchanta, who have bought during the week to a fale extert. Ginghams were {n moderate request, with a good as- sortinent of new styles. We quote Lancaster a’ 10}¢.; Ciirten, fine quality, at 1c., and Manchester, of leas furcy styles, at 10c. Mus. "de Taines,—New styles ave more plenty, and Tange from lic. a 20c. . Cloths.--Cotton warps, of seasonable patterns, were im good demand, whil+ al woollen cloths were scarce and in good demanc, Cassimeres and Satineds were quiet, and the latter are quite dul with s large stock on hand. Tueeds avd Jcans—Ken'ucky j-ans continued in fair demand, but at rates in favor of purcbasess, Tweeds were in good apply and dull. Linscys were dulland the supply heavy. Forwex Goons,—The assortments of seasonabie styles are good, and jobbers are now prepared to satisfy the most fas'dAfous taste from all parts of the Union. Alk eta) nd detirable patterns are remarkably firm, not- witbstandirg importa ions have come forward on a oo scale. Dress silks ore still higo, acd the stock soar up to thecemand, Black silks are in better stozk, pretty active a demand at full prices. Taffeta, ribbons, of plain patterns, have advanced about 73g per cent above the prices of last autumn. Millinery goods wore fa good supply snd in a great variety of styles. There is some eer éemand for low priced cloths, while the stock was erate. Sarvepay, Jan. 10, 1856. $2000 Ta State 5’ 815; 60ehs N'Y Cen Red 93 5000 Virginia 6 33; 350 Erie RR. 2 10C0 Missouri 84% 100 £000 85 100 £000 Can 7 84% 350 £000 do. $4 500 1700 Ohio 6s °76.... 11034 700 4000 Erie 2 Mt Bda 953 150 500 Er Bs of '75.be0 90%, 100 0600 do...b20 90% 100 1000 Hr R Ist 3000 Hud R 2d w' 15060 111 Cen RR Bes ‘1 é 81 50 17 Cleve, U 120 Cleve& “i't 60 Gal & Chi RK B30 ML 25 a 4 280 do.,.....0 78 { AMIR Mis RR.. 86 200 (is Central RR, 955% $4000 Virginia 6” a8 52K BOARD. 126 shs Frie RR. 100 do 50 shs Nie Tr 0 62x 200 16 Ill Cen RR 96 io 4 ‘ 400 Riso sing RI 87 160 Cumd Coal Co, . 200 co. 0 8T 260 dow... 28% 200MISENTRR90 8236 200N YOrmRR.660 68° “15 dow... 88 10 do, . 60 Sh) & Mi 66 60 a 100 Frio F 10 - 100 éo, 10 250 ki ess 100d 866 300 b3 155 be0 160 #10 CINCINNATI STOCK SALES. By Hewton & Holmes, for the Wek Enaing January 16, $8,000 Lit, Mla RR. Co., 6 per ¢. b. due1883, 16dys. 80 1,000 do don de co aaa 48 55 a . 38 86 eB B wo 3 a 4 re : ae 30: gton & Lexington, BS £0 Cincinnati, Hamil 100 Covi Lex 20 tayn 23) 14 Citeisnati, Wilmington & Zanesville 6 29 Greenville & Miami......... » 6 CITY COMMERCIAL REPORT. Sarunpay, Jan. 19, 1866. Flour.—The market was firmer, with sales of 5,000 5 6,000 bbls. common State, at $8; and extra de, A138 125;'2 98 18M Wheatealea of Western Upper Lake ¢) were made at $1 81; was med W mwas Ot 00e. 0 Ole; and new ie 9 92c.; with cone ue Ene bene Pork was rather easier, ond raley of mesa were made at $17 120817 25. Haws were ecld at 9: ‘Bacon sold ree , to ar-ive and om the at Oe.. Dic. w Sie.