The New York Herald Newspaper, December 9, 1857, Page 2

2 three-quarters of the present fiseal year will, in all proba: | T bility, be increased from the causes set forth in the report | of the Secretary. His suggestion, therefore, that authori- ty should be given to supply any temporary deficiency by the imac offs limited amount of treasury notes, is ap- proved, and I accordingly recommend the passage of such ST soi THR TARIFY. As stated in the report of the Secretary, the tariff of March 3, 1857, bas been in operation for so short a pe jod of time, and under circumstances 80 unfavorable to ‘a just developement of ils results a8 & revenue measure, that I should regard it as inexpedient, at least for the pre- sent, to ¢ its revision I transmit berewith the — made to me by the Se- cretaries of War and of the Navy, of the Interior and of the Postmaster General. They all contain valuable and important information and suggestions, which 1 commend to the favorable consideration of Congress. INCREASE OF THR ARMY, Thave already recommended the raising of four addi- dionet regumerta, and the report of the Secretary of War presi nts strong reasons proving this increase of the army, ‘under existing circumstances, to be indispensable. INCREASE OF THE NAVY 1 would call the special attention of Congress to the recommendation of the Secretary of the Navy in favor of the construction of ten small war steamers of light draught. For some years the governmedt has been obliged ‘on many occasions to hire such steamers from in- dividuals to supply its pressing wants. At the present moment we have no armed vessel in the navy which can penetrate the rivers of China We have but a few which can enter any of the harbors south of Norfolk, although many millions of foreign and domestic commerce annu = Pass in and out of these harbors. Some of our most valuable interests and most vulnerable points are thus. left exposed. This class of vessels of light draught, great speed, and heavy guns would be formidable in coast de- fence. The cest of their construction will not be great, and they will require but a comparatively small expendi dure to keep them in commission, In time of peace they wil prove as effective as much larger vessels, and often more useful. One of them should be at everysstation where we maintain a squadron, and three or four should be constantly employed on our Atlantic and Pacific coasts. Feonomy , uiility, and efficiency combine to recommend them as almost indispensable. Ten of these small ves- sels would be of incalculable advantage to the naval ser- vice, and the whole coat of their construction would not exceed two million three hundred thousand dollars, or $230,000 each. The revort of the Secretary of the Interior is worthy of @rave consideration. Ittreats of the numerous, impor tant and diversified branches of domestic administration entrusted to bim by law. Among these the most promi nent are the public lands and our relations with the In- dians, THE PURLIC LANDS. Our system for the disposal of the public lands, origi nating with the fathers of the republic, has been im proved as experience pointed the way, and gradually adapted to the growth and settlement of our Western States and Torritories, It has worked well in practice Already thirteen States and seven Territories have been carved out of these lands, and stil! more than a thousand millions of acres remain unsold. What a boundles pros- pect this presenis to our country of future prosperity and power! We have heretofore disposed of $63,862,454 acres of the public land Whilst the public lands as a source of revenue are of great importance, their importance is far greater as fur nisbing homes for a hardy and independent race of hon est and industrious citizens who desire to subdue and cul tivate the soil. They ought to be administered mainly with & view of promoting thi wise and benevolent policy. In appropriating them for any other purpose we ought to use even greater economy than if they had been converted into mouey and the proceeds were already in the public treasury. To squander away this richest and noblest inheritance which any peop) e ever enjoyed uponob jects of doubttul constitu ity or expediency, would be to violate one of the most important trusts ever com: mitted to any people. Whilst 1 do not deny to Congress the power, when acting ma fide as a proprietor, to give away portions of them for te purpose of increasing the value of the remainder, yet, considering the great temp- tation to aduse this power, we cannot be too cautious in its exercise. Actual settlers under existing laws are protected against other purchasers at the public sales, in their right of pre- emption, to the extent of a quarter-section, or 160 acres of land.’ The remainder may thea be disposed of at pub- lic or entered at private sale in unlimited quantities. Speculation has of late years prevailed to a great ex- tent in the public lands. The consequence has been that large portions of them have become the property of ind viduals and companies, and thus the price in greatly ou ced to those who desire to purchase for actual set In order to limit the area tion as much ne, the extinction of th tim tt 2 of the public surve the tide of emigrat If Congress should here States or companies, as they commend that the intermediate ect government should be subject 1 pr settlers Ttought ever to be our cardinal policy to reserve the public lands a3 much as may be for actual settlers, aud this at moderate prices. We shall thus not only best pro mote the prosperity of the new States and Territories and the power of the Union, but shall secure homes for our posterity for many generations THE IN! The extension of our limits has boought within our jurisdiction many additional and populous tribes of In dians, « large proportion of which are wild, untractable and difficult to control nd w dispos nd habits, it is impossible altogether to re. strain them from committing aggressions on each other, as well as upon our frontier citrzens and th our distant States and Territories military expeditions are frequently necessary to overawe and chastise the more lawless and hostile The present system of making them valuable presents {0 influence them to remain at peace has proved inefle tual. It is velieved to be the better policy them in suitaale localities, where they can diments of education and be gradually induced to adopt So far ax the experiment has been worked well in practice, and it wll doubtiess jess expensive than the present system number of Indians within our territorial ved to be, from the best data in the In P pac uiernate sections to yue heretofore, I re retained by the aption by actual gran Limits is b terior Department, about 325,000, Choctaws, Chickasaw and apart for them wast of ducation and in ail « of Cherokees settled in the territory se Arkansas, are rapidly advancing in the arts of civilization and self government; and we may indulge the agreeable anticipation that at no very distant day they will be incorporated into the Union as one of the sovereign Stat FICK DEPARTMENT THR POST It will be seen from the r } that the Post Office De <has been compelled to d important portion of the mi Severn years past, for a of § and extending its operations. Their raj grow xpansion are shown by a decennial statement Of the t post offices, and the length of post roads, Commencing with the In that year there were in 1847, 15,146; and in 7,000 post of 1457 they n i mi miles; in 4, and in the 57 there are 242,001 m. post road, including of railroad, on which the mails ‘are trans adjusted ‘by the defray these ¢ wor tures Congress § tation of »' March 3, 1 leaving i to the eredit of the ‘department in current year. Teommend to your {the department in relation to yeerland mail route from the ‘alifornia, The route currence as the one, inmy attain the important objects judgment, best calculat contemplated by Congr EXTRAY AOAC ‘The late dieu g004 effect should it People to returot may have one ne government and the fu wise and judicious revuls a the economy beth in public ate expenditures overtlowing treatury has ied to Labits of prodigality ce ip our legistation. It has induced Con large priations to objects for which never would have provided had it been necessary to the amouat of revenue required to meet them by saved taxation ans. We are now compelied by | scrutinize our expenditures aud in performing this duty, e extent of my constitut.onal D Our wit utmost I pledge my co ope compeunney Tt ougtit to be observed at ie een: omy i Cowsary ty accmy the same time that true pub withholding the means ne- tional objects entrusted on consist sb important to us by tt ally sach as may be Becesary present er of thee confine our appropriat to objects of thix character re justice to individua’ an t course. “In all canes ca Congress momically appli POWER tiation “every bill which «hall Representa Senate a inw,”” be ved and signed by the President f not approved, “he shall re turn it with his objections to that house in| which it ori! nated.” In order to perfor igh and responsible duty, sufficient time must wed the President to read ‘and examine every by nted to him for proval. Unless this be afforded, the constitution & dead ler » this particular; and even worse nee & means of deception. Oar constit the President's approval and signature wt gress, are induced to believe t rmed th) . y, when, in truth ted *, more From the practice Congres, such an examination of each bill ae the constivution requires, has been rendered Impossible, The moet important business of each seasion ia generaliy crow to ita last hours, and the alterna. ros)tent is either to violate the con ¥ which he owes to the people and segrore b. for want of ¢ tt impossible he should have examined, or. by his refu this, subject the country and indivi ‘ome and inc’mvenienge Resides, a pract Jate in appropriation ‘on new and important the Preaitent either t which he does not apy ging the wheels of the priation bill Formerly. « Cifile appropriations for evry ir and Ute Well established policy tune was then required by the faton "my own part, Thave d yall approve no bill which T have will be a case of extreme and Which sball (yer iaduce me great ament Wy vetoing at appro: h bills were confined to ape » effect existing laws f the country resident for their exa berately not ned rRent nec depart from tis rul dit | taken up and paeeed | venience would onl; therefore respectfully, but earnestly, recommend hat the two houses would allow the President at least two days previous'to the adjournment of each ses sion within which po new bill shall be presented to him for approval. Under the existing joint rule one day is allowed; but this rule bas been hitherto so con stantly suspended in that important bills con- tnve to be to ‘wp till the very last moments: ‘of the session. In a large majority of cases no great public inconvenience can arise from the want of time to examine their provisions, because the constitution has de- clared that if a bill be presented to the President within the last ten days of the session he is not required to re- turn it, either with an approval or with a veto, “in whieh case it shall not be a law.’’ It may then lie over and at the next session. Great incon- be experienced in regard to appro- | priation bills; but fortunately, under the late excellent | lw allowing a salary, instead of a per diem, to members oa ea ss ee no inconvenience of a called | greatly reduced, | Teannot conclude without corunen ling to your favor- able consideration the interests of the people of this Dis. | trict. Without a representative on the floor of q | they have for this very reason peculiar claims apon our ) Just ier eg this I know, ee long acquaintance | with them, are e . cual ‘JAMES BUCHANAN. ‘Wasurnaton, Dec. 8, 1857. THE TREASURY REPORT. ‘TreascRy DEPARTMENT, Dec, 8, 1857. Sm—In compliance with the act of Congress entitled « Anact supplementary to an act to establish the Treasu- ry Department,” approved May 10, 1800, I have the honor to submit the following report:— On the Ist of July, 1856, being the commencement of the fiscal year 1857, the balance m the y The receipts into the treasury during the fiscal year 1857 were $68,631,513 67, as follows :— For the quarter ending Sept. 30, 1856— From customs. ve + $20,677,740 40 From public Re 8. $04,380 Fd From miscellaneous sources. c 21,925,431 36 For the quarter ending Dec. 31. 1856:— From customs... 14,243,414 90 From public tands, 808,252 86 From miscellaneoas sources. 123,999 59 ———_ 15,178,667 35 For the quarter ending March 31, 1857:— From custom: 19,055,828 55 From public 1,065,640 11 From miscellaneo 1274054 90 2————_ 20,895,023 56 For the quarter ending June 30, 1857— From customs « 9,899,421 20 | From public lands. 2 103/213 28 From miseeHaneous sources 172,756 92 ——_—— 11,135,391 40 regate means, therefore, for the ser: » of the fiscal year ending June 30, 88,532,839 12 ending June 30, for the quarter ending Sept. 30, °56.. $18,635,113 21 | Boing for the quarter ending Dec. 31, °56.. 17,940,877 90 Beitg for the quarter ending March 31, ‘57, 17,245,932 68 Being tor the quarter ending June 30, '57.. 16,960,801 06 Tota’ 0,8: 5 24 8 —Whicii ‘was appiied tothe several ‘branches of the pub- lic service, as follows:— Gil, foreign intercourse, and_miscellan’s. $27,531,922 37 5,858/274 72 Service in charge of Interior Department. . Service in charge of War Department, 19,261,774 16 Service in charge of Navy Department... 12,726,856 69 Purchase of public debt, principal, premiuin and interest...... Aste 5,043,896 91 $70,822,724 85 Total. . As shown in detail by statement 1. ting the expenaitures from the aggregate means Ded during the fiscal y iy 2.1857, 0 During the frst qua var a balance was left in the treasury .. 617,710,114 27 cal year, 1858, being from July 1, 1857, to Sept.” 80, 1857, the receipts into the + $18,573,729 37 2,069,449 39 296,641 05 From public landl...... From miscellaneous sources The estimated receipts during the three re- maining quarters of the current fiscal year to June 30, 1858, are:— From customs. . . 33,000,000 00 From public lands. 3,000,000 00 From miscellaneous 750,000 00 20,929,819 81 36,750,000 00 —Making an estimated aggregate of means for the service of the current year., .... .$75,389,934 08 Au exposition of the grounds on which this amount of revenue from customs during these three quarters has been estimated, is given in a subsequent part of this report: — ‘The expenditures of the first quarter, ending September 380, 1857, of the current fiscal year, were $23,714,528 37; being for Civil, foreign intercourse and miscellaneous Service in charge of War Department Service in charge of Navy Departme: Vurchase of the public debt, principal mium and interest.......... 6606 Total... .....6. (See statement No. 2.) The estimated expenditures during the three remaining quarters of the current fiscal year to June 80, 1858, are..........06. yma TREE —leaving an estimated balance in the trea ary on July 1, 1858, which will of course affected by any reduction oF increase of expenditore not contemplated, of..... $426,875 67 YSTIMATWS YOR THR FISCAL YEAR, FROM JULY 1, 1858, TO SUNK 30, 1859. | Estimated balance in the treasury on be DUR, MDs canstasciiesrsncnceteaenicn $420,875 67 Fatimate of receipts from customs for the ng June 30, 1859.............. 69,500,000 00 ‘eipts from the sales of public cde ceandvesesibigoctcnss” “GRURMNO@ Fetimated pts from miscellaneous soure ou saseeee 1,000,000 00 Aggregate of for the service of the fiscal year toJune 0, 1850, as estimated The expenditures are estimated as follows :— Balance of existing appropriations for the ‘service of the present fiscal year, whjch may be applied to the service of the y€ar ending June 80, 188 75,926,875 67 16,586,588 35 7,165,224 49 ated appropriations proposed tc made for the service of the fiscal year from July 1, 1858, to June 30, 1859, as | detailed in the printed estimates 60,312,943 13 Aggregate estimated expenditures for the service of fiscal year to June 30, 1859... 74,064,755 97 —leaving ap estimated balance ip the trea tury on July 1, 1859, of. ses 1,962,119 70 It w difficult at all times imate in advance the ble receipts into the treasury for the next one and re. Ourrevenue being derived pi rg Bote utes on imported merchandise entered at the Custom Houses for consumption the amount is necessarily depend. | ent not only upon all those causes which affect trade and merce, buton such as control the inclinations aud ity of the people in the purchase of such merchandise consumption | Ordinarily an approximation can be made to the proba. bie result, provided no unlooked for cause shall inter sturb the usual course of trade and com nts ofthe present fiscal year furnish a striking tration of the uncertainty of all such estimates from jon of unforeseen causes which exert @ con: fluence over the revenue from customs estimates for the present fiscal year were last Congress by my predecessor, it was im resee either the material change in the rates of duty, which were among its last acts, or the present revulsion in trade and commerce, both which bave deep ly affected the retenue, and satisfactorily account for the difference between the estimates and those now submit ted. ° With these two disturbing causes now in view, it is very difficult to form satisfa 'y estimates of the proba- the receipts from customs. The tariff act of March 3, £57, has not been in operation long enough to test its ef. possiti t:'upon the revenue, even under ordinary cir 4 Simultancous with this act going into opera. tion, the country is subjected to a disastrous revulsion. To What extent importations would have m affected by it bad there been no revulsion in trade and commerce, * now ax much a matter of conjec ture as it was before the passage of the act. Experience bas thrown ne light on the subject. The probability is that it would, to a limited extent, 1 increased impor: tations, though not te the extent of supplying the defi. y created by the reduction of the duties. ing to Congress, under these circumstances, the receipts for the present an t flacal year, it is deemed proper to accompany them with a @ate- ment of facts and principles upon which they have been made, in order that Congress thay pass its own judgment upon the credit to which they are entitled. She exports and imports of the United States have al waye borne a relative Proportion, the respective amounts net often differing materially from each other. Both have stendily increased, with with the growth and progress of the country there fore, 10 ascertain the probable importations into t try, the amount of our probable exports Mportant element in the calculation, The exports year ending June 90, 1867, amounted to $342 ihe imports for the same period were amount of our exporta depend not only on. the quantity but the value of the arti€les exported. The quantity 0 «ond the value of others may be considerably di minished, aud yet the deficiency thus created may be supplied y her the increased quantity or value of oth les. It is probable that this very of things may occur during the present fiscal year. The _ indicati ‘ Present are, that the exports of breadatuffs and provisions Will decrease both in quantity and value; but the increas ue of cotton, and ita probable prices, which consti touch the largest item of our exporte, would make up such deficiency. From the best information which can be obtained , the opinion is entertained that the exports for the present fiscal year will not fall below thowe of Inst year | more than ten per certum. Looking to the tmportations of the last ten years, it may ant litte | be safely stated that the ratio of annual increase has not | been less than ten | there were two years in which there was falfing off termined that | Thie was attributable, doubtless, te temporary causes Per centam though within that perio | which do not affect the general propowtion The foreign merchandise subject to duty importet during the Mrst quarter, ou ling 20th September last, of the present fiscal year, by tho statement marked 3, amounted to $58,819,585, and the customs received di that quar- ter were, us siated in the estimates, $18,573,729 37, The tar iffof the 3d of March last having operation on the first day of that quarter, the under which a considerable portion of that amount was realized were #0 exceptional as to no satisfactory guide for the remaining three quarters of present fiscal year; and it becomes an important consideration, in view of the pro- bable means in the treasury to meet existing appropria- tions, to spores the amount of merchandise subject to duty a will be entered for consumption during that period. In making the estimates herewith submitted, the amount of merchandise subject to duty posted during the cor- responding three quarters of the last fiscal year were taken, being $210,000,000, to which ten per centum was added for the anal b cea Sat Figo n do disturb- ing causes—giving for the amou merchandise payin dy under the then existing tariff of 1846, an aggregate of $231,000,000. The inquiry now presents itself, to what extent will this approximated amount of merchandise paying duty be diminished by the revulsion which has come upon the country. An answer to this inquiry constitutes the most serious difficulty in the way of 1g an estimate of the receipts into the Treasury from the customs. Lookin:, however, to our probable e3 the great resources of our coun- try, its unexampled prosperity in many branches of in- dustry, its ity to recover temporary pressure in its trade and business, the opinion is expregsed, with some confidence, that the reduction from this cause will not ex- ceed twenty-five per centum. This would bring the amcunt of merchandise paying duties down to about one hundred and seventy-four millions for the remaining three quarters of the present fiscal year. For several years the average rate of duty upon all dutiable merchandise by tho tariff of 1846, appears to have been within a fraction of twenty-five per centum, which would produce on that amount forty-three millions of dollars. ‘The next point of inquiry is: How much will this sum be diminished by the reduced rates provided by the act of March 3, 1867? From the calculations made of duties under that act upon the im] of the last boa a compared with the amount of duty actually realized under the tariff of 1846, it appears that about one quarter should be de- ducted for the effect of the tariff of 1867. Ten millions of dollars’have, therefore, been deducted on that account, making the probable receipts from customs during the remaining three-quarters of the present fiscal year thirty- three millions, which has accordingly been placed in the estimates. It will, of course, be understood that the returns of du- tiable merchandise, from which these inferences are drawn, are of merchandise imported, while the cus- toms revenue is exclusively derived from merchan- dise entered for consum) In these estimates the amount of merchandise imported is supposed to equal the amount entered for consumption. *In periods of commer- cial difficulty like the present, the amount of merchan- dise imported and placed in warehouse without payment of duty will no doubt exceed the amount entered for con- sumption; but such excess is generally temporary, and is soon obviated by diminished importations and increased withdrawals for consumption, which restores the equili- brium without giving occasion for the discussion of such details in any general statement of the revenue. The receipts from customs for the next fiscal year, from July 1, 1858, to June 30, 1859, will depend ina great mea- sure upon the extent to which commercial and monetary transactions shall have returned to their ordiuary channels. It is probable that the immediate effects of the present re- vulsion in trade will have ceased by that time, and that the ‘usual amount of @utiable merchandise will be required for consumption. The estimate submitted is based on the amount of three hundred and seventy millions of dutiable merchandise, being the amount assumed for the present fiscal year with the usual increase, and without any de- duction for the effects of the present revulsion. Upon this amount the customs, under the act of 1846, with the deduc- tion heretofore explained for the effect of the tariff of 3d March last, would produce about sixty-nine and one-half millions of dollars. ‘The annual estimates in detail, as prepared by the Re- gister of the Treasury, are presented separately, by this department. These estimated expenditures are divided into three classes :— 1, Balances of unexpended appropriations which may, and probably will, be required by the respective depart: mente in the course of the next fiscal year. 2. Expenditures under indefinite and permanent appro- priations. In this class was placed the standing appro- priation made by the joint resolution of February 14, 1850, ‘of $2,450,000 for expenses of collecting the customs. It is proposed to change this permanent appropriation for annual appropriations of increased amounts, reasons set forth in another part of this report In the mean- time, as the proposition has not been sanctioned by Con- gress, the estimate remains in this class, 3 3. In the third class are comprised the estimates sub- mitted by direction of the several executive departments, as necessary to be appropriated to carry on the several branches of the public service in their charge for the next fiscal year. These three classes comprehend tne estimated expenditures for the fiscal yen ending June 30, 1859, as setforth in this report. Neither these estimates, nor those for the remainder of the present fiscal year, include any provision for deficiencies or other objects which the several departments may ask for during the it ses- sion, nor for any expenditure whatever, which may arise out of the original action of Congress during the session. ‘To meet such additional expenditures as may be required from these scurces further means must be provided. The efficiency of the public service, as well as the secu- rity of the public credit, requires that this department shall be provided with means to meet lawful demands without delay. During the remainder of the present fis cal year it is estimated, as before stated, that sufficient re- venue will be received in the course of the year to meet the ordinary outstanding appropriations, Tut the great bulk of the revenue being derived from duties on mer- chandise payable only when it is entered for consump- tion, the period when such duties wili be realized is en- tirely uncertain, being left by law to the option ef the im- porters during ‘three years. The pre@ent revulsion has | caused avery large portion of the dudable merchandise imported since it commenced to be warehoused without payment of duty. To what extent this practice will be | pursued during the present fiscal year is too much a mat- | duties tor of conjecture at present to risk the public service and the public credit upou the probability of an immediate change in this respect. It may be safely estimated that in the course of the present fiscal year & large portion of the merchandige now in warehouse will be withdrawnand id thereon; but, in the meantime, adequate means for meeting lawful demands on the Treasury should be provided. Such provision should be made at the earliest practica- ble period, as a failure of sufficient means in the Treasury | may occur at an carly day. The exigency being regarded as temporary, the mode of providing for it should be of a temporary character. It is, therefore, recommended that authority be given to thts department by law to issue treasury notes for an amount not to exceed twenty mil | lions of dollars, payable within a limited time and carrying a specified rate of interest, whenever the immediate de- | mands of the public service may call for a greater amount of money than shall happen to be in the Treasury, subject to the Treasurer's drafts in payment of warrants. The fact that such temporary exigency may arise from circumstances beyond the foresight or control of this de partment, makes some adequate provision to meet it in- dispensable to the public security Previous to the passage of the art of March 3, 1849, which requires all money receivable from customs and other sources to be paid into the Treasury witbout abat ment or diminution, the whole expenses of collecting 1 revenue from customs were defrayed from the moneys collected, and the balance only was paid into the Treasury. The expenses of collecting the customs in California and Oregon were excepted from the operation of that act by the third section of the act of September 28, 1850, and the mode of defraying the expenses of collection, which ex isted previous to the act of March 3, 1849, has been conse quently continued at the custom houses on the Pacific Coast up to the present time. The joint resolution approved 14th February, 1950, makes a permanent appropriation for the expenses of col lecting the customs of one million two hundred and twenty-five thousand dollars for each half year, together with such sums as may be received for storage, &e., un til Congress shall act upon the subject. During the first four years of the operation of the act of the 34 March, 1849, the expenses did not equal the amount of this ap- propriation, aud a considerable balance had accumulated, which has enabled this department to defray the ex- peuses of the last four year, which have considerably exceeded the amount so appropriated, as is shown by statement marked 4 ‘This accumulation having become entirely exhausted, this department will not be able longer to defray the ex penses of collecting the customs unless Congress shall now act upon the subject In order that this important branch of the public ser. vice may be conducted with promptitade and efficiency, 1 recommend that Congress shall, at its present session, le jelate upon this subject, to operate from the Ist of y, 1868, which will put an end to the permanent tion under the joint resolution from that date. eal year ending the 30th Juno, 1867, the ex penses of collecting the customs considerably exceeded three millions of dollars. clusive of those of the ports amounted to nearly half a mil lion, as shown by statement marked 5. For the half of the current fiscal year, extending from Ist January to 80th June, 1868, at least one million six handred thousand dollars will be reqpired to defray these expenses im the Atiantic States, and I recommend that sum to be appro- priated for that period ‘The reasons which origin Jed to the exception of the custom houses on the Pacific Gast from the operation of the general law of 1849 no longer exist in the same force as formerly, but the system it be suddenly changed without much inconvenience. I propose that, during the remainder of the current fiscal year, these expenses be defrayed, ax heretofore, out of the accruing revenue; but, from the commencement of the fecal year onthe lat July, 1858, that provision be made by law that the whole re ceipts from customs and al! other sources on the Pacific coast be paid into the Treasury under the act of 1849, and the expenses of collection be defrayed out of appropri tions for that purpose — To meet the expenses of collecting the custome throughout the cotire United States during the fiscal year ending JOth June, 1869, will probably require $4,000,000. The statement before referred to shows the progressive increase of these expenses, from yearto year, since the passage of the act of 1849. “It a corresponding increase ip the amount of mere imported and the duties paid. But the latter are not sufficient to ox- plain so large an addition to the expenses of collection, aa nearly the same number of officers are required to collect the ema ae the larger amounts. Other causes have largely contributed to swell these expenses, When the public revenue happens to be rbandant, many projects are listened to and adopted by Congress without careful regard to the burdens they may permanently impose. The building new cevenue cutters, not needed for the forcement of the revenue the multipli- m of porta of entry and ports of delivery, for local and teroporary convenie oe, at pokes not required for the collection of the revenue , the erection of ex. pensive buildings for officers of the custome and other public officers are of this class. The original outlay for these projects is usually provided for by special appro priations, and their amount is the principal object that attracts attention. But, under the existing syatem, every one one of these appropriations of necessity imposes an additional and permanent charge upon the expense for collectit e customs. New ina wih ax must be equi |, kept in repair, prov! wi cers and men and maintained in a state of efficiency at a large annual ing the cuntwne, tad they may be in constant readiness to relieve vessels jn distress, or perform some other duty equally remote from 1) eir appropriate and legitimate functions of enforcing the lows. New ports of entry or delivery created by law at yoints remote from the ordinary channels of t fo- reign commerce must be provided with officers paid annual salaries or other emoluments, as expenses of col- lecting the customs. New buildings must be furnished, ‘warmed, lighted and kept in a state of repair and cleanli- ness, under the direction of suitable officers, with proper compensation. All charges of such character are now defrayed out of the appropriation for the expenses of col- | Jecting the customs. While the public revenue has re- cently rapidly diminished, these charges are daily in- creasing in amount. ‘The public debt on the Ist July, 1857, was $29,060,- 886 90. Since that time there bas been paid the sui of $3,895 232 39—leaving the — debt at this time $25,- 1¢6,154 51. Since the 3d March last, there has been paid of the public debt $4,878,877 53. detail shown ‘by the Lg pee parkas 6,7, continu ure) proper regard for ‘the public interest would justify. ‘The object was to redeem, as far as possible, our outstanding debt which had a number of years to run, whilst the pay- ment of the large sums from the treasury required for this purpose was affording relief to the commercial and other interests of the country, which were then ing to ward off the revulsion which finally came uy § At that time it was not serionsly apprehended Ahe re- vulsion would 80 great affectihe trade and business of the country; but, ‘ing even to the most unfavorable result that ould happen it was thought that the treasury , if compelled to to a loan to meet any temporary de- ficiency that might occur, would suffer no injury baving the cl ‘of the loan changed from debts fall- ing due at a distant period to treasury notes, at a lesa rate of interest, and which could be redeemed at the pleasure of the ecg Arevulsion in the monetary affairs of the country al- ways occasions more or less of distress among the le. The consequence is, that the pes mind ig to the government for relief, and particularly to that branch of it which has charge of its financial operations. There are many persons who seem to think that it is the duty of ‘the government to provide relief in all cases of trouble and distress. They do not stop to inquire into the power which has been conferred by the peoplo upon their agents, or the objects for which that power is to be exercised. Their inquiry is limited to the simple fact of existing embarrassments, and they see no other agency capable of affording relief, and their ne- cessities, not their adgnsesite, force them to the conclu- sion that the government not only can, but ought to re- lieve them. A moment of calm reflection must satisfy every one that such is not the true theory of our govern: ment. Itis one of limited powers, to be exercised for specified . Its operations, political and financial, ould be conducted within these prescribed limits in that manner that it will most certainly effect the object for which the power was conferred. In doing this it should De the policy, as it is unquestionably the duty, of the gov- ernment so to conduct its affairs as to confer the greatest good upon the greatest number of the people. This mis- apprehension of the powers and duty of the government has led to the suggestion of measures of relief, which have been preseed with such earnestness upon this de. partment as to demand a brief consideration of them. A private individual who finds that his income is herp at once feels the propriety of bringing his expenditi within his reduced means. The suggestion to such a per- gon to increase his expenses would instantly be rejected. To characterize such advice as folly would not be con- sidered harsh or unjust. The estimates of receipts into the treasury for the present fiscal year exhibit the fact that the income of the government will be considerably reduced. In this state of things it is seriously urged that our expenditures should be increased for the purpose of affording relief to the country. Such a policy would doubtless furnish employment to large numbers of wor- thy citizens. It would require the use of large amounts of money, to be raisedeither by a loan or the issuing of treasury notes, and would thus afford temporary relief to the country to an extent limited only by the discretion of the government in this unauthorized use of the public treasure and credit. But where shall we look for the power to do this in the constitution? What provision of that instrument authorizes such a policy? The absence of a satisfactory reply to these inquiries is an unanswerable argument to the suggestion. Iu the discharge of its legi- timate functions the government is required to expend large sums of money in the building of vessels-of-war; the erection of custom houses and other public buildings; the preparation of the defences of the country, and ina va- riety of other ways, which give employment to labor, and draws from the treasury the money which has been collect- ed from the people for these purposes. There might and would be just cause of complaint if the government, un- Ger the pressure of either an imaginary or real monetary crisis, should suddenly stop these extensive operations, 4 by throwing large numbers of employés out of ser- ce add to the distress and suffering which the revulsion bad already created. Being engaged in the —- of necessary and legitimate works for the public service, it would be the policy and duty of the government to con- tinue their prosecution, even though it should occasion the necessity of increasing its available means by some extraordinary measure. The discontinuance of such works has not been and is not now contemplated, and to this extent the couvtry may look with propriety to the operations of the government for relief. There are other public works of Jes@ necessity, which for a variety of causes have not been commenced. A temporary postponement of them will violate no existing contracts; will deprive no one of em- ployment to which he is authorized to look; will inflict no ‘wrong upon any portion of the people: but will enable the government to realize its means in advance of its expen- diture of them, and perbape avoid the necessity of in creasing the public debt. A system of public economy, regardful alike of the just claims of the people and the protection of the treasure and credit of the government, | Must command the approval of the country; and it is upon such principles it ed to eonduct the financial de- partment of the government in the present crisis. ‘As a measure of relief to the country it is proposed to increase the tariff. A return to a high’ protective system is regarded by some as the surest mode of extricating the country from ‘its embarrasements, and affording it inte as well as permanent relief to the public distress. The people are already suffering from distress, and the sition geeks to diminish their suffering by adding to their burdens. The earnestness and ability which have been Drought to the support of this proposition demand that its merits should be examined with some care; and without attempting an elaborate exposition of a question which has heretofore commanded so much of the public attention, it is deemed proper to refer to some of the considerations which render the adoption of such @ pelicy unwise and improper. e theory of the protectionists is this:—That under ‘a low tariff the importations of foreign manufac. tures are encouraged, and, being brought into the coun try at lower prices than they can be produced, the com. petition with the domestic manufacturer is ruinous to his yusiness. The remedy is, to raise the duties uy the fo- reign article to such a point that either it will exclud- od thus give to the domestic manufacturer the entire market, or elge it will be so increased in price by the ad<itional duty as to enable the domestic manufactur- er to receive a remunerativg price for his productions. That the effect would be temporarily for the benefit of the manufacturer is conceded, but that the ultimate effect would be alike injurious to him as well as all other interests js equally clear, In looking upon the operation as a mea. gure of Felief, we must consider its effects not only upon the domestic manufacturer, but also upon the consumer. If the inereased duty neither ditnimishes the importations nor increases the price, it is manifest that no advantage has been derived by the domestic manufacturer. If the effect should be to exclude the foreign article, then the domestic manufacturer monopolizes the bome market, and commands bis own price. The relief he needs is a higher price for his goods; and, ag a matter of course. unrestrained as he will then be by the laws of competition —he will so raise his prices as to remody the evil of low prices of which he bad complained. The effect upon the consumer isclear. He must pay the increased price thus put upon the article of consumption. Nor does it stop there. Under the existing state of things, when he has pur chased the article, he has not only fornished himself with the goods he needed at the reduced price, but at the same time bas paid into the treasury the tax required of him for the support of government. The meagre ot relief pro- pored by the oe increases the price he is re. quired to pay for his goods, and where the foreign article is excluded leaves his tax unpaid. This deficiency in the revenue must be supplied, and he is called upon to pay it from his other resources. The measure of relief thus imposes upon him these additional burdens, in the increased price of his goods and the additional price he is required to pay. If, however, the increased duty should not exclade the importation of the article, but simply ad- vance the price to a remunerating point to the domestic manufacturer, the effect a a San onal h oa be = require him to: the addi price, only wy the foreign article, but also upon the domestic ‘manufacture. ‘The smount of taxation put opon him for the benefit res. pectively of the treasury and the domestic manufacturer, will depend upon the relative proportion of the foreign and domestic article he may consume. Tn po event can the increased duty operate to the advantage and relief of the manufacturer exeept by a corresponding injury to the consumer. The amount of benefit conferred and injury sustained by the proposed relief measure would depend upon the relative number of manufacturers and consumers cf the articles upon which the increased duties were laid: and asthe gumber of consumers exceed the number of manufacturers, so would the injury suatained exceed the benefit conferred. A policy so partial and unjust in its operations cannot command the approval of the country. Regarding the ruggestion as a proposition to return to the protective system, it is obnoxioas to all the objections which have beon heretofore so forcibly and successfully urged against it ‘The day bas passed in this country for increasing the restrictions upon commerce, and itis hoped that the same remark will soon be applicable to all other countries. We are accustomed to look at the amount of our exports and rte as evidences of our growing wealth. To encour. age commerce, enlarge its operations and extend its limits, have been regagded by all portions of our people as ob jects worthy of their united efforts, One branch of com. merce cannot long exist without the co operation of the other, We cannot expect to furnish the world with our cotton, brendgtuffs, tobacco, rice, and other productions, unless we are willing to receive in return their produc: tions. There must be mutuality between nations ag be. tween individuals, If a policy is to be adopted by which the productions of other countries are to be excluded from ours, for the benefit of the domestic producer of such ar ticles, justice to other interests demands that there should be adopted a policy by which the producers of our present exportsshovld also be furnished with a marketfor the fruits of their industry. To do this is impracticable; not to do it would be unjust. How strangely inconsistent is the doctrine of the pro- tectionists with the practice of the government! We an- nually expend latge sume of money in maintaining a navy, whose ebief duty it is to give protection to eur commerce in all parte of the world. Appropriations are asked and freely given to send our fing in search of new avenues for our increasing trade. The American officer who returns to his coun try, to announce the successful termination of his’ mission, in having made new and fMvor- able commercial treatios, is hailed aaa pablic benefactor, and all classes unite in doing him honor, In these de- mopetrations no one participates more cordially than the protectioniste. If, upon the announcemegt of the di of anew country which promised a large and lucrative commercial intercourse with our own, it should be simul taneously to impose strictions Ae A . productions, nnder 1 dustry ‘what would be the jad of an entightaned publ jon upon the wisdom of a people who ex. pended treasure in discovering new marts of trade, and unmediately Aguied themselyge all the promised be- i NEW YORK HERALD, WEDNESDAY, DECEMBER 9, 1857. nefits to be derived from it? Inthe caso supposed, the proposition would be more startling, but not_ more unrea sonable, than when applied to our intercourse with those countries between whom and ourselves a commerce has grown up from smal! beginnings to its present larg: mensions. This has beeu accomplished through a policy inaugurated by our own government, and which has com- manded the approval of enlighteved minds throughout the world. Other countries have, in their legislation of late years, manifested, by reducing their duties upou imports, ‘a desire to co-operate in the work of throwing off those shackles upon the freedom of commerce which false theories have placed upon it. It would present a strange spectacle if the United States should be the first to com- mence a retrograde movement. The sentiment among our people in favor of free com- merctal intercourse is manifested in their domestic as well as fereign policy. The strong fooling in the public mind for the extension of our territorial !imits is geverally at- tributed to the desire for more . That it operates to some extent is freely admitted; but such a cause fails in its application to those cases where the uisition of new territory brings with it no le to the land. And yet the public sentiment uit territ where every foot of it ia care ar ls as decided an in’ any other case., It-ts 00. counted for satisfactorily only upon the theory that, as our territorial limits are extended, wo enlarge the free trade, opening new markets ‘for the productions of Sei alte Khsrsaiinan polly bas tayoses restrictive interm pol im It is an error to su) the occasional revulsiohs which bave fo seriously affected our manufacturing inter- eat is attributable to the want CIA, Braet 8} In the policy which the gover nment adopted of allow- ing many of the raw materials used by them to come in, either free of duty or at low duties. in the incidental tection which a tariff laid for the purpose of revenue gives {hemerts ie. pereasean comme ion of Ser ip S rought al yy the general prosperity countr they will find the most ample enoouragement that cowed reasonably be expected or desired. I. all other inter- | in the , they suffer from the too juent changes of 4 from tbose fluctuations in busi- tari ness which flow from causes wholly distinct and Reparate from the tariff question. What they need is steady prices, a sound currency. and protection aguinst the ruinous effects of expansions in the credit system. From a free and un- restricted commerce with the world, no interest in our country would derive a more certain and permanent bene- fit than the manufactur Rejecting the proposit to raise tho tariff as a measure of relief, and looking to the probable receipts and expen ditures for the progent and next years, no change is re- commended in the act of March 3, 1857, at this time. The pet tariff is not regarded as perfect—far from it. It , however, been in operation less than six months—a length of time too short to judge of its workings, even un- der the most favorable circumstances. This fact, in con- nection with the revulsion in business, makes it wholly impracticable to form a correct judgment upon its merits ‘There are changes which should be made as soon as it can be done with propriety. A return to the decimal division in the rates of duties, a more accurate classifica tion of various articles, and other amendments, would greatly improve the law, even if it should be found by experience unnecessary to make any radical change io its general provisions. The propriety of postponing any ac- tion upon the sudject, until an opportunity has beon offered of testing its general merits, seems to adinit ef no serious doubt. Returning to the question of relief which is expected rom the government, it becomes necessary to inquire nto the cause of the present revulsion, as preliminary to the consideration of a proper remedy for it. Public opi- nion generally holds the banks responsible for all our em- barrassments. The true cause is to be found in the undue expansion of the crediteystem. The banks constitute an important part of that system; but there are other ele- ments entering into it, which, equally with the question ‘of the banks, demand pubiic consideration. Credit, confined to its legitimate funciions, is the repre sentative of capital, and when used witt in that limit, may extend and invigorate trade and business; when it ceases to be such representative, it stimulates over trading, excites speculation. and introduces an unsound state of things in the business of thecountry. It is this undue expansion of credit which has brought the country to its present embar- rasementa. The extension of bank credits and the over- issue of bank notes, ig @ part, and a very important part, of this undue expansion. A Spirit of speculation being created, a demand is made upon the banks for the use of their credjt, and yielding to the pressure, they respond by the increased issue of their notes and by enlarging their discounts. The extent to which the banks have en'arged their credit beyond its proper limits is not to be measured alone by the amount of their circulation. At the time the New York city banks suspended specie paymeuts in Octo- ber, they reported a larger amount of specie in their vaults than their notes in circulation, and, notwithstanding thi fact, they were unable to meet the demands of their cr ditors promptly with specie, owing to their credit opera tions under their deposit system. Having extended their own credit, and led their customers to do the same, they were upprepared for the revulsion which came upoo them. If it be true that our embarrass ments have been oc- casioned by the cause here assigned, we must look bey oud the action of the banks, to the ee. of other corpora: uons ag well as individuals, to fathom the eutire cause of our difficulties. The limits of this report will not admit of a detailed examination of this subject, but a soli tary illustration will present the subject in its proper light. In answer to a circular letter addressed to the va- rious railroad corporations of the country, the informatton contained in table No. 9 has been obtained. It appears from this statement that the capital of these companies amounts to $491 435,661, their indebtedness to $417,243,- 664, The annuai interest upon the latter sum is $25,093,- 203, their annual income was $48 406 488. It is proper here to remark, that this statement is not entirely accurate; some of the companies failed to respond the circular of the i and in such cases, the returns made by them during the preceding year,’ and contained in the last report of my predecessor, have been ‘used in the preparation of the table. Whilst it cannot, therefore, be considered as perfectly accurate, it approxi. mates it sufficiently near for the illustration of my argu- Itexhibits the extent to which this class of corpo- rations has contributed to that extent of expansion of cre- dit which is properly chargeable with the recent revul- sion. Itis due toa large class of our railroad companies to state that this excessive indebtedness ix not eq nal dis tributed among them. Some have conducted th bust. ness with the utmost propriety and success, whilst others have so far exceeded these limits as to present the fore- going aggregate result of railroad operations in the United States, The undue expansion of credit. which stimulated in some an eager desire to borrow, and in others a willing disposi tion to lend, which engendered schemes of improvident speculation, leading to rapid fluctuations in prices and habits of extravagance, I regard as the principal cause for the embarrassment existing in the commerce of the coun- try. The only efficient remedy for such evils is to be found in a return to the prudent courses and steady hab- ta which, for a time, were unhappily laid aside. This government could do but litte toward extricating individ. als, corporations or communities from the pernicious con- sequences of their extravagant expenditures or ill con ceived enterprises. When crevit been extended so far beyond the bounds of legitimate confidence as to cre ate a revulsion in trade, occasioning a fal! of prices and a destruction of private credit, a speedy ajustinent of the relations between creditor and debtor by liquidation and settlement is the surest mode for the restoration of the equilibrium. Wild and ehimerical speculations will thus have their termination, industry will be better enabled to realize ite sober © tations, and the substantial interests of society being relieved from the noxious influence of excitement, cveraction and disorder, will resume their accustomed en: in communicating a healthful and vigorous activity of the ver impwedi- ment may exist to the exertion of the native foros of aoct ety, and to extract from the experience they have gained lessons to be embodied if wholesome and well considered laws to prevent the recurrence of the evil. It is evident that the great moneyed corpo: rations created under the laws of the States bad a controlling influence in the undue In many of the States the le ut, and embodies ce has suggested for pansion of private ¢ gislation in respect tot many of the safeguards th their regulation But it will not be denied that this legislation has been nmugatory. The State authorities have alrendy manifested an eager disposition to relieve them from the penalties they have incurred, and to diapene, a far as they were with the performance of the obligations they had ex acted from them when they were organized. This has been done, in some cases, without an inquiry into th condition or management, or cheir capacity to resume their position as solvent institutions, of even to protect the munity from a depreciated paper currency In my judgment, the period has arrived for Congress to employ the powers conferred by the Constitution upon it to mitigate the present evil, and to prevent a catastrophe of a similar kind in future; and for this purpose a compul sory bankrupt law, to include two clases of corporations and companies, ie necessary. It should be a law for the protection of creditors, not the relief of debtors; to pre vent improper credit, not to pay improvident debts: com: pulsory, not voluntary. ‘The effect of such @ law would be felt more in its restraining influence than in its practical execution 1 do not recommend a law similar to either of those which have heretofore existed, and were abandoned after 8 short, and unwati« factory experience. The first was adopted the 4th April, 1800, and was repealed the 19h December, 1803. It pro- vided for a compulsory process of bankruptcy against those merchants and commission agente, at the suit of creditors whose insolvency had become manifest by cer- tain overt acts of fraud or defaleation, and effected a col- lection and distribution of the estate of the bankrupt throngh the judicial tribunals of the United States, which was followed by his discharge from the debts IAs estate had not satisfied. The second act was passed 12th August, 1841, and was repealed the 3d March, 1843. This act, be- sides the compulsory system of the act of 1800, contained a system of bankruptey, to be applied on the petition of an insolvent debtor, of any class or profession, and to re. sult in his relief from his debts and engagements, upen the surrender of his property and compliance with other conditions of the act There are grave objections to the prosent adoption of the systems developed in these statutes. The voluntary feature of the act of 1841 is rejected as unwise, wn just, and onnecessary. It was this provision wh rendered that law so justly odious in the public min Nor do | propose to extend the provisions even of a con pulsory bankrupt law to the numerous cases covered by the act of 1841. It is better to leave to the operation of the insolvent and brnkrupt laws of the sevoral States all canes which do not, from their magnitude and importance, affect the general commercial and business interesta of the country. It is believed that the power of the States is ample to meet such cases, and the propriety and Ra of exercising such powers will, sooner or Taker, be - it oped by the leasons of bitter experience. The two cares which it is now to bring under the operation of a comy y bank rupt law are banks and railroad corporations. The immenee capital companies, thet controling power int commercial and ba- sinese operations of the country, their disposition to ex Panes and enlarge their credit, an’ the ruinous effects pro. ir eed by their Sosy when att hyo] - J. bounds, impose ment the du f i, by every comarutional means in their power, for the The facta loyed by these in the proper and legitimate conduct of ‘h corporations rehioh are presented in other portions of tie re a the cendition and of there two Rates ay ey pte ae ‘The object is to injure them, but to Protegt the eommunity, The gly be to restrain edie | stem. | their operations within proper limits, and thereby insure to the country all the benefits they are capable confer. ring, without the accompany! ar wild speoula- tions and ruinous voruoeaet In closing my observations on this subject, it is proper to state that these rocommepdatiene are -” formed im | an} it of hostility to theee corporations and compan: nor te insensible of their vast iinportance in the ca mercial system of the United States. Nor have I avy dig- position to denounce any punishment, nor to subject thems to any loss, in the present conjunction of their affairs. Mg | object is to place them in subjection to wholesome laws, | so that, while the benefits they yield to the community | may be preserved, their excesses’ or errors will be coun- teracted or nted. The details of a act, formed on the principle I have suggested, should be adopted after an enlarged jul into their condition, and should embody the most lil provisions for the security of the rights of the persons im- | terested-in them. A reasonable time should also be al- | lowed to the corporations which are now in default to re establish themselves before this act becomes operative. During this financial crisis and general der ent af | the currency, the collection and disbursement of the pub- lic revenue have proceeded without loss or embarrass- | ment. The operations of the independent treasury sys tem, in ordinary times, had been found by experie | eminently successful. The danger of losa from anfuithta and inefficient officers, the expense of condueting its rations without the intervention of bank agencies, its ade. | terious effects upon commercial pi and the goneral business of the countr¥—-alll Of wien was ‘apprehended | by the opponents of the measure at the time of its ad tion—have been demonstrated to be unfounded. It remained to encounter a commercial crisis i the | sent to vindicate the justice and wisdom of the pol against all cause of complaint or soprehecaion, A brief comparison of the operations of the Treasury departmeng during the suspension of 1837 and the present time will ee ‘the subject before the public mind in the most satia- factory manner. | On the 30th June, 1837, immediately eafter the gencrall suspension, the deposit banks held to tho credit of the | Treasurer of the United States, and subject to his draft, | the sum of $24,994,158 37—a larger amount in proportion | to the receipts and expenditures of the government, tham | there was in the treasury at the time of the suspension by the banks the ‘present year. funds of the government bcos) then under the control of the banks, | and they either unwilling or unable to pay, the govera- ment was placed in the anomalous condition of having am overflowing treasury, which it was seeking to deplete by distribution or deposits with the States, and yet unable te meet its most ordinary obligations. It had either to make its payments and deposits in the depreciated curren which suspended banks forced upon the country, or 4 pone their payments until, from its credit or othor ordina- ry resources, it could command the means for that pur- pose. It is unnecessary to detail the expedients to whic the government was forced to resort at that time. The embarrassment consequent upon this state of things will be remembered by those who participated ip the scenea of that day. It will be realized by every one from thie brief presentation of it. The effort of the government to withdraw its deposits and get control of its funds was folb as an additional blow aimed at the banks. Every dollar which could thus be drawn from the vaults of the banks diminished to that extent their ability to afford relief te their customers. Their loans had to be contracted, and the demand made by them upon their debtors for settle- ment increased the pressure already felt in the money market, and thereby added to the general panic and want of confidence, which are the usual attendants of ® monetary crisis. The government was not only embarrassed for the want of its money, but in the effort to obtain it became ob- noxious to the charge of acding to the general distress, which many persons thought it was its duty to relieve. To avoid a recurrence of these difficulties, the plan of separating the government from all counection with the banks was suggested, and in 1846 was perma- nently adopted. The result is before the country in the | occurrences of the last few weeks. Tue banks, as im | 1837, have suspended specie payments, but the aval ceases there, so far as the operations of the Treasury de- partment in its disbursements are concert ‘The ge- vernment bas its money in the bands of its Officers, and in the only currency known to the constitution. K has met every liability without embarrassment. It hag resorted to no expedient to meet the claims of its credi- tors, but with promptness pays each one upon presenta. tion. If the contrast between the operations of 1837 and the present time stepped here, it would be enough to vin | dicate the policy the indepeadent treasury system; | but it does not. ‘The most remarkable feature distinguish: ing the two periods has reference to the effect upon the cemmercial and genera! business interest of the country | produced by the present operations of the independent ‘weasury. Itis the relief which has been afforded to the | money market by the disbursements in specie of the gene- ral g mment. In 1837 the demand of the government for its funds, with which to meet its obligations, weaken- ed the banks, crippled their resources and added to the general panic and pressure. In 1857, the disbursements by the government of its funds, which it kept in its own vaults, supplied the banks with specie, strengthened their hands; and would thus have enabled them to afford relief when it was so much needed, if they had been in a condition to do it. Their inability or unwilling ness to do so, under such favorable circum stances, only shows how much worse the Gmbarrassment would have been if the government was now demanding payment from them, instead of fur — them eee: of ine t the time, arte to the passage of the Inde- pendent Treasury act of 1546, the greatest apprehension was €) and no doubt felt, by its opponents, of the effect h a policy. The accumulation of g| in the beg og ra = Lge | pant mad nee it would occasion in jection of the public dues in specie, and particu- larly its operations in a monetary crisis, were regarded as certain sources of ineviiable evil. The ides that it would afford relief at such a time was looked upon as wild and visionary by its opponents, and not very confidently anu- cipated by its friends. ‘The success of the policy should be as gratifying as it was unexpected to those who resisted it adoption with so much teal apd ability. Whilst the opponents of the system apprehended from it the most ruinous effects upou the banks and the currea- cy, it friends looked confidently to ite for a wholesome check upon excessive issues by net Ex- perience bas shown that the apprehensions of the one were groundles#, and the anticipation of the others were well founded, to a limited extent. The increase of the cir- culation of the banks at the time they were used as pub- lic depositories, compared with their circulation at other periods, and particularly since the adoption of the inde pendent treasury system, affords the most satisfactory evidence of the restraining wfluence of the system u the tendency of the banks t extend their credit to- crease their issues. It is impossible to estimate with accura- cy the extent of this influence. There are so many elemeuta which enter into the financial operations of a groat apd extended country like ours, that no man can pretend to analyze the many causes at work with a viow of assigning to each its separate and legitimate effect. No one doubts, however, that the effect of collecting the public revenues in the notes of the banks, and depositing the funds whea collected with them, would be an extension of the credis of the bank, and an addition to their circulation 5 tioned to this increased demand for the use of their notes, To the extent that this stimulant edit bas been with. held, to that extent, certainly, has the restraining in- Nuence of the independent treasury upon excessive bank imeves been felt, The collection annually of about $70,000,000 jn the notes of banks, and a large amount af all times remaining in their vaulte as deposits, would afford facilities for extending their creuit, which the past history of these institutions show they would not hesitate to avail themselves of. If such a tem had prevailed for the last ten years, the strong probabilities are that the present crisit would have been much sooner reached, and the effect would Lave been more disastrous, more extended, and with fewer sources of relief. If the beneficial effects of the independent ti system in restraining the banks from extend wus credits have not been over estimated, aud it is conddeuly believed that they have not, itis respectfully submitted to public consideration whether the atoption of the same principle by the respective State governments would not complete the work of reform and prevention ay ‘bank suspensions, so hapily inaugurated | and successfully practicod’ by the general gov- ernment. The various State government now collect an- ually abont $50,000,000. This amount is collected mainly in bank notes, and, when not immediately disbursed, i# Sea ag form of bank notes in the vaults of the tate treasuries, or deposited directly with the banks, | Let the several States collect their reveuues ie specie, and thence is withdrawn from the banks a stimulant to over- banking to the extent of the facilities now afforded them by this use of their notes. ye remarks already made in connection with the inde- pendent treast of the general government are here ap- ieabie to the that woul! be produced by such icy. The collection and disbursement in specie of the revenues of both the general and State governments, not to speak of the varions city, town and county corporations, would constitute such a demand for specie, at all times, to require its retention in the country. The banks, know- ing that they were liable to furnish note holders wita this ie, would ate their issues accordingly, and would consequently restrained from excessive over- issues, which render suspension of specie payments by them Inevitable when a crisis comes, which requires thom, to do what they ought always to be ready to d their debta. apprehension that sacha requiremens by the State governments would operate Tne upon the peop, would prove as unfounded as it did in the case of the government. State taxes are now paid, most generally, in bank notes. These notes profess to be the representatives of specie. If they are, the taxpayer could easily convert them into specie. If they are not, then they ought not to be received as such, either by the State governments of the people. The very object of the law is to guard against the Inter contingency, and thus to secure to the country a sound proper currency, always convertible into apecie. Under the operation of an independent treasury system, adopted by each of the States there would be no difficulty in retaining in the country a sufficien! amount of specie, not only for the purposes of the government, but secure a sound paper currency. As long, however, ag | the present system lasts, this result cannot be lookéd for. One would suppose that the large increase of gold in the Inst few years would have enabled the banks to have ° Bre tected themeeclves against the necessity of suspe ing epecie payments. Such should have been the case; but i hae not been, and will not be, until some policy, such as ia here recommended, is adopted, which will compel them ta keep sufficient specie in their vaults to meet their issues, Since the discovery of gold in California in 1849, there hag been coined at the mints of the United States the sam of $400,000,000, and evena larger amount has been added from that source to the gold of the world. At that time it Was Ostimated that there was in the United States $120,000- 000 hai oa je, Of that amount the banks held $43,000,000; Feed which they issued « circylation of $114,743,415. eit deposit# at that time amounted to $91,178,623, it Stairs $240,- js extimated that there is now in the United 900,000 of specie, and of thie sum the banks have 06, ; upon whieh they have isved a circulation of 214.778 828 and their its eve increased te 251,352. It willbe seen this statement that, with the increased quantity of specie in the the tbo 08 fon, kane they have (Reeeons anaes oor to if ve imeroased tion From 6114 T13,AN6 to SHIA TTOMDD No tae ween, that ench wonkd have heen the case if, Et been condected upon tne ad been condweted upon neiples of the independ- ent treasury system. Tt is condenliy benered ‘tivat ‘A policy would have saved the country from the bank suspension. If, at the time the general ‘was making ite disbursements in specie at the ment of the present crisis, the same operation going om frvmh Yue UTergnt State treasuries, i i