The New York Herald Newspaper, December 6, 1865, Page 4

4 THE FINANCES. CURRENCY REPORT. A Speedy Return to Specie Pay- Compulsory Redemption of the Currency Recommended. A Tax of Eight or Ten Per Cent on Cotton Recommended. Proposed Removal of the Currency Bureau to New York. ae, &e. &e. Orrice oF THE COMPTROLLFR OF THE CURRENCY, Wasmineton, Dee, 4, 1865. Sm:—Ihave the honor to transmit to the House of Representatives the annual report of the Comptroller o° the Currency, as required by the sixty first section of the National Currency act. Ihave the honor to be, yery respectfully, your obe- dient servant, FREEMAN CLARKE, Comptrolicr of the Currency. Hon. Scioytrr Conrax, Speaker of the House oi Re- Preserggy ves. ORGANIZATION OF NATIONAL TANKS, Since the last annual report from this office two hun- dred and eighty-three new banks have been organized, and seven hundred and thirty-one State banks converted into national associations, making the total number organized to Nevember 4 sixteen hundred and one; of which six hundred and seventy-nine were new banks, and pine hundred and twenty-two were conversions from State banks. A statement of the respective States and Territories in which each bank is located, the paid in capital, the eur- rency delivered to each, and the bonds deposited with the Treasurer to secure their notes is herewith sub- mitted; alsoa detailed statement of the affairs of each bank on the first Monday of October last, with an ab- stract of their condition on that day, an abstract of the condition of all the banks on the first days of January, April and July, 1865; together with the names and com - pensation of the clerks and other employés, and the total expenses of the bureau, for the fiscal year ending June 30, 1865. RANKS CLOSED AND PALL One ank has voluntar tidation and has been closed under the provisio Ww, Viz. :— First National Bank, Columb! Circulat‘on outstanding $11,990 Circulation redeemed. 78,010 Lawfu! money has been deposited with the treasurer for the redemption of the outstanding notes of the above named bank, and the bonds with:rawn. The First’ National | ank of Attica, N. Y., has failed, and a receiver has been appointed to close up its affairs. Its outstandin lation, none of which has been pre: sented for redemption, is $44,000, secured by $31,500 of six per cent and $6,500 of jive per cent bonds, ANGE OP THE STATE TO. NATIONAL BANKS. Ry section forty. if th Currency act any dank Incorporate! by special law, or banking institution organized under a general law of any State, is permitted, on the performance of certain specified requirements, to be converted into a national association, with the same powers and privileges, and subject to the same duties, responsibilities and rules as are preseribed for the asgo- ciations originally organized under tbat law. By the scvonth section of the act amending the “Act to Vrovide Internal enue to Support the Govern- mont,” approved March 3, 1865, the privilege of conver- sion on the part of yanks was extended so as to give a preference to those which should apply prior to the Ist day of July, 1565, over new associaiions applying for the privileges of the National Currency act. The result hes been that nearly all of the Sate banks have voluntarily changed {uto national aasociations, and it isa gratifying fact that this transformation has been accomplished without deranging the business of these institutions or affecting essentially the volume of Dank note cireulation, Since the amendment of the act, no national currency has been delivered to a couverted State bank until ‘the circulation issned by it under State Jaws had been reduced below the amount to which its capital asa national bank would have entitled it under the law; and, as many of the converted banks had a greater amount of State notes in circulation than they were entitied to under the national act, the result bas been to diminish rather than increase the volume of bank note circulation. STATR BANK CIRCULATION. ‘This restrictive course in reference to State bank cir- culation been the cause of great complaint on the part of many of the banks—imore so, perbaps, for the Teason that in vera! States the enabling acts giving consent to the ¢ sion of the State hanks to national associations, contain provisions nominally giving the right to converted banks to continue the 1sue of their State circulation for a limited time after the conversion T, very clear that it fs not the spirit or intent of the Jaw to “allow any national bank to have a jon than the amount prescribed in the (ter a bank becomes a national association ded in_ the forty-fourth section of the law, d bound to observe all its provisions, A nk is unquestionably bound to redecm on and discharge all the obligations of hile any State enactments grant- ig restrictions in conflict with or tes laws are necessarily Vo The national curt State ino ational Jaws, and it raust t States are pa third si notes other than sions of the national mverted fron the notes of th currency act. If a national ban institution pays out and cireula bank which it is bound to redeet, it certainly issues notes prob ud by the act. i of converted banks to reissue the notes of kk, and also to recerve national notes to the amountt capital entitled them to were recognized, they would have had a double circulation, and the aggre gate at this time would probably have been two-fold tho amounts of their present issues, NAVIONAL WANK CIRCULATION, ‘tof national bank notes in ac- taal ereulation on the Ist day of October last, : The ain $171,321,903 date, as Commissioner ti 78,807,575 250,189,478 J tender notes and frac sued and outstanding on , 1865, was 4 in the hand issued to banks Making the aggregate amount of legal ton- der and bank notes in circulation as au- thorized to be issued to and by the se «+ $1,083, 462,233 bank cirewiation ding that will be retired about as fast ax na tional currency {# issued to convasted bani sees ees $78,867,576 Also (h® amount of “compound interest notes’ converted into 5-20 bonds since the Ist of Oc- 123,284,006 ‘Tho amount then left as the av roney of the country 18..... In order to ascertain the amount of actual active circula- tion on the Ist day of Oct last there should be deducted from the last mentioned sum : + $960,167,326 then in circulation. « ‘Naitonal circulation not ‘od to banks... : Amount of legal tender notes held by banks, inéluding $74,- 261,847 in compound interest notes cevsseogces 193,094,307 Compound interest notes, other than those held by banks, mostly held as investments Dy insurance and trast com- ion and savings banks, lest ‘say $10,000,000 in actual’ cir- culation .... > 121,314,196 Currency in the Treasury of the 56,236,440 United States... .. $400,929,007 —Which show the actoni ci-eulation to be, $400,844,220 This favorable exhibit of the amount of paper in actaal circulation is owing in agreat dogree to the accumula tion of currency in the bande of tho banks, in the abe sence of the great deman:is of the government for cnr- rency since the close of the war ‘As an erroneous Impression may prevail asto the \. 16 amount of lawful money that banks are requi to old, it is thought to state that as the liabilities: #tood on the first Of October the required sum was $74,261,847 over the amount that banks were permitted to have to their credit, and count as part of the came, in Danks acting as rédeeming agent ‘The banks held at that time $14,966,148 im ein, whieh, ded from 974,261,447, leaves wd the sum that they should have held iw tender notes to fulfil the re. quirements of the law. It will be soon, therefore, that bed sum held, in law. Ali stateTnon(s and comparisons jin this report are made ‘ep to the Ist of October Tet, ‘tuiat being the date of the last Quarterly return from the banks vere ur Way NEW YORK HERALD, WEDNESDAY. DECEMBER 6, 1865 TRIPLE SHEET: . money, im excess of the required reserve, was | faith and integrity of the government will fad a ready be thrown around the currency it will soon be Internal revenue the $170,045, penpoons trees the gaieiotie theese to distinguish So. qosers Bom Ge expe commissions COMPULSORY EEDEMPTION OF TER CURRENCY RROOMMENDED. RESOURTS. and banks wit be as to redeem the former It cannot be necessary to dilate upon the inevitable | _ The resources of the country are great beyond enume- of tuetr own promulgation. receipts, serene, consequences which m xt rosult from. this excesaive | ation, the development of wealth rapid beyond prece- BEAU OF THE COMPTROLLER 70 BE REMOVED TO NEW June 30, 1866. ai amount of irredeemable currency, if left uncontrolled. by | 4¢Rt, and i requires only a judicious application of the territorial 4 the action of government in respect to the reduction of | Means to the ond to enable the government not the first section of the National Ourrency act internal and wealth and enforcing a system of redemption which | °!y to m all its pecuniary obligations with entire bureau under which its operations were to | the United States during the shall curtail by its operations the power and tendency to mptitude, but without imposing exactions that shall vied into effect is made am adjunct Table G, the amounts collected and paid into the (peter rvenin expansion. So far as bank issnee are concerned it is be. unduly burdensome or give just cause of complaint ‘Treasury Department, and of course | Treasury, and amounts Sie tee pees ed that the moat efficient chock would be foond in pmaies Be ds ci sec chee + dats he Daw at Washington. During the imetpiency of | collection districts, States and ies during compulsory, lemption in the great financial and mm & rovenut © measure there were many reasons rendering con- | year. commercial centres of the country--New York, , | Faised sufliciont to moet the interest on the public debs, y to tho Treasury desirabte and proper; but now | ” TabloH, the ratio of the receipts from speciiic sources 3 pe CR RT ad or Philadelphia. Under such a system, properly en. | PAY the ardinary expenses of government, and con- ‘the system has becomo operative, and’ what was | to the aggregate of all collections. forced, many institutions established chiefly for the | tibute thirty millions of dollars annually t) « sinking | theory at the first has been reduced to practica, there are AGGREGATS RECEIPTS, rapeiep ees . advantage arising from the issue of their own promises, | 24 that will pay the national dobt in thirty-two years | many reasons which ronder it expedient that the apo- ‘The aggregate receipts of internal revenue for the fiscal 108 which: sh pee: without the expeciation of being called upon to redeem | ®24 4 ‘ rations of the Currency Bureau should be transferred to | vear— ‘sent rates them, would find that they had exceeded the require- ‘T CAN BE PRODYOCED BY TAR TARIFY. the great financial and business emporium of the coun- | 1863* Tho tariff can bo so adjusted as to produce one hundred | try, the city of New York. Not only would the conve. | 1864. and twenty millions of dollars; one hundred miliions | mience of those concerned in the business of banking be | 1865. aa can bo raised on whiskey, malt liqnors and domestic | promoted by the change of location, but a saving ‘These amounts are exclusive of the direct tax, or tax of wines; fifteen millions on ‘tobacco, one hundred and | in expense would tius he olfvoted. ' Nearly two hundred | twenty millions of dollars, upon the lands of the country, twenty-five milion on cotton, fiteem millions from | thousand dollars per annum in express charges alone | which has been partially paid in Mpa pet re and the ments of legitiinate business, and obtain relief in ths abatement of their issues, The circulation thus with- drawn from sections where it is not required could be dispensed to other portions of the country as yet but - 3,057,008 ber 1, 1863, to March 3, 1863, the tax was partially supplied with banking institutions, 01 Ly rs roller of the Cui ar Pr hat date to April 1, 1864, sixty cents, and el vel the cit hatte its of nation bank: one dollar barrel, of not more than thirty-one In this n ps, from licenses twenty ‘millions, and from the | would be saved to the government and the banks by the | duty upon the circulation and ope eggs gy ; yer , Pea ee ol. r. also, would a remedy be furnished for the unequal distribution which has resulted from the act of the 3d of March last, giving the preference to the con- version of State banks over applications for new national associations, without reference to the amount of currency preminim on the surplus of gold. ater paying interest on | change of location proposed, while the risk, loss of time | which in 1863 was pald bonds, ten millions, making, in the aggrozate, four hun- | and personal expenses which would thus be obviated aro | rency, and has since been paid to the Treasurer, but aro | since that time one dollar, dred and five millions of dollars, a sum probably one | large in the extreme. When the circulation now in use | inclusive of drawback and sums refunded, which in the ‘The number of barrels upon which tax was received, hundred millions in. excess of the amount that will bo | by the banks shall have become worn, and require re. | soveral years were as follows:— as pearly as can be ascertained, was 1,766,827 in 1868, Tequired under an economical administration of the gov- | newal by exchange of old for new, the inconvenience, . Drawhack. Amount Refunded. | 3,459,119 in 1864, and 3,657,181 in 1865. which by such conversion has been concentrated in lo- i ‘alities whet ’ | eramont, leaving a large margin on the above estimate | Joss of intercst and expense will be increased to ® mani- | 1863. + $677,106 57,605 DISTILLED SPIRITS. calities where the former institutions were the most nu- | For Yeduotion. “The esiiinates, however, of the revenue | fold extent. 1864, O8T/431 7,470 derivablo from the several sources indicated are not the | The government already owns the buildings in Now | 1865. «++ 098,655 TSA CAPITAL OF THK ORGANIZED RANKS, The national banks already organized embody # capital sufficient to entitle them to’ receive $309,672.992 of cir culation on the deposit of the reqnisite securities in gov- ernment bonds. It is not anticipated, however, that tore than three hundred millions will be called for by result of loose conjecture, but each is founded upon | York which a transfer of the office would require for its RRCRIPTS PROM SPECIAL SOURCES. careful inquiry in reference to past productions and | accommodation, that are now rented for about the sum | — It may not be unprofitable to prosent in juxtaposition | uring the fiscal year 1863 the tax was uniformly revenue under the existing Jaw. the Treasury Department 43 paying for an equal amount | the amounts received from several of the most import- | twenty conts por gallon. For the fiscal year 1864 the tax ¥-TIMATED PRCEPTA FROM THE COMING COTTON CROP, of room outside of the Treasury buiiding that would be | ant sources of revenue, with brief suegestions in relation | was twenty conts until March 7, after which it was-eixiy It is estimated that the cotton crop the noxt year will | vacated by the removal of the bureau. I am satisfied, | to their differences. It should be borne in mind, how- | sents. From July 1, 1864, until January 1, 1965, it wee amount to between two and a half and three millions of | therefore, that the interests of the government, the | ever, that the jaw was in oneration but ton months for $1.60 per gallon, and afterwards $2. banks now organized, as many of them, located in large rities of th 4 2 ar halos; @ tax of ten cents per pound on two anda half mil- | public anit the banks would be subserved by a transfer | tho year ending June 30, 1963. . ‘amou! tod in the year 1866, of clroulation to wiieh thet ‘anital entities therm, ‘Bonde:| 8048 will produce one bundred and twenty-five millions | of the bureau to New York at an early day. AYES, TRUST COMP» NUS AND GATINTB $3,802,102 or nearly one-fourth the whole amount, web ype of dollars. Its reasonable to suppose that the annual With a system of redemption properly enforced, the 1863. 1864. 1865. at twenty or sixty cents per gallon. This resulted mainly have been deposited. to entitle the banks now organized to $244,754,125 of circulation only. Inno event will the | TOP of catton, after two or threo years, will equal in } banks located out of the cities named as redeeming | Dividends and addi- from the fact that large quantities of spirits were sold by amonnt the average of the crop for a fow years provious | points should be relieved from the obligation to keep a | _ tions to surplus..$760,005 $1,577,010 $3,987,209 | tho distiliers within the last ton days of Juno, 1864, thus limit of the act be exceeded Sous i to 1861, which was about four and a half millions of bales, | regerve equal to fifteen per cent of their circulation and | Circulation, 2,056,096 1,908,341 increased duty, while the taxes thereon did Fae a ee ae anne acen parnarts: '1 tas of eight canteen pornd on that quantity, would | doposits constantly ou hand. It would ba a hardship to | Depots. pu 780,723 2,040,933 | Sseaping tho inctarwed vioaing month of July, bemg the oft the TO eee he lakaatian ot more | produee one hundred and eighty millions of dollars, a | roquire banks to be prepared to redeem both at home | Canttal. = = 902.885 | ‘rst of the next fiscal year. Considerable quantities were prc) measure of | sum more than sufficient to pay the interest on the pub- | andat one of the points indieated, and in addition to | — Tho tax upon dividends was three percent until June | removed from, the distilleries, too, under trans} value to be used in the transaction of busin during @ | jie debtafter the entire amount is funded. The license | keep an idio reserve of fifteen per cent against contin- | 30, 1864, after which it was flve per cent. bonds, or under bills of lading, prior to the la day of time of peace, and in the ordinary flow of events, there rod ts ‘ da , and stamp duties could be dispensed with after the next | gencies. ‘Circulation”” and “deposits” were not taxed until hich produced a @milar result, ee sey ALS arog ie Fenires Ai Bape feal year, and it is to be hoped that after that period no . There is no real strength or safety derived from the | October, 1863. Bey ce riakn comer ns may occasion no litte demand, in the necessities of the country as pacha more income will be derived from promium on gold. provision as it exists. When a bank fails neither money “Capital”? was firss charged under the act of June 30, surprise that the increase of ‘was followed by @ duced by the unparalleled civil war throvgh which. the Three-tourths of the crops of cotton and tobacco are | nor reserve in any shape would be found on hand, and | 1864, when the duty upon ‘crculation”” was increased. Magceaen adeeaoe But I regard the receipts of the past exported; that proportion, therefore, of the tax on those | the sooner those that are improperly conducted or are By the act of March 3, 1865, the tax upon deposits was | year from distilled splrite a8 no criterion, if, inased nation has been called to pass, | Now, howover, that tho | articles would be paid by foreien countries, and to that | orzanized for other than a legitimate banking basiness | extended to savings banks having no capital stock, pedi ns ey open por Aether Ayman oo Ae omerge ich called fo "i cs point ray a ep cals f this departure from dest | Sxtent contribnte to the liquidation of the public debt | are closed up tho bottor will it be for the system and the | ‘The taxes upon the “eapital,”” “circulation”? and “e- | haq'ine tax fallen. upon the ordinary natural consump to be the dictate of sound pol'ey to return as speedily as | 224 Felief of our own people. public. posits” of national banks are not received at this office, | tion of the country. ‘This was checked in some measure, tho financial condition of the goweramont and theta | 4 TAX OF HIGHT OX TRY CkvTS YER POUND oN corToN | "By the thirty-second section of the act it is provided | nor included in the above. undoubtedly, bythe tax; but the distillations in the wine ness interests of the country will allow to a more normal RECOMBNORD. “that every association formed or existing under the RATTROADS, ter and spring of 186364 were everywhere in advanee condition of the enrrency, so that the pecuniary relations A tax on cotton of eight or ton cents per pound would | provisions of this act shall take and reccive at par, for 1863, 1864, 1865. of consumption, anticipating the increased duty, glut + cubsisting between curcives and ather oationg meat ne | ne'ther d minish the domestic prod:iction or foroign de- | any debt or liability to said associat on, any and all notes | Dividends..........$838.503 $927,393 $2,469.796 | ting the market, and thoroughly deranzing the customary placed upon a more harmonious basis of value, v mand for that staple. Onr means of production, natural | or bilis issued by any association existing under aud by | Interest on bonds... 255,998 596, eae laws of demand and supply. For a long time the com The evils resulting french irtaleemable cecreney are | #24 applied, are such ax to enable ns to furnish the | virtue of this act.” The duty was three per cont until July 1, 1864; after. | sumption has not been of spirite which have paid article at ‘a less price, inclnding the tax pro-| The provision is anomalous in its character. To com- | wards five per cent. The same tax was then imposed | duty current at its date, but always of those posed, than any othor’. country, Even at half | pela bank to respond to the demands of its creditors | upon all profits carried to the account of any fund, or | jiabje at all, at a previous and lower rate: ‘The increase the price which this product now commands in Now | in lawful money, and yet compel it to receive from | used in construction. The amount recéived from this | has never been of advantage to the government, but has York and Liverpool it can be grown and sold ata large | its debtors such currency as they may choose to offer, | source is included in the dividends for 1865. swelled the income of manufacturcrs and speculators. profit, including the proposed tax, in its cost. Nor would | does not seem to be warranted by equity or sound policy. INSURANCK COMPANIES. For several months of the past year, when holders were th» imposition of a tax on the staple production of the | It is even questioned whether a national bank is com- 1863. 1865, disposing of their adventures, the market price of dis Southern States prove injurious to that section of the } pelled to redeem its circulation at all, in lawful money, | Dividends and addi- tilled spirits, even in the Atlantic citios, remote from Union. It will of necessity be a lurve purchaser of | if presented by an associ organized under the same tions to surplus... . $225,485 $445,306 $764,658 | tho place of production, was but little, if any, in ade Northern manufactures, and if by the proposed measure | act, as any debt or liability” may be discharged by its | Premiums and aasess- vanoo of the tax. It is’no wonder, then, many dastil- too well known to require enumeration. ‘They should ba tolerated no longer than absolute necessity requtres, ‘The funding, and the consequent retirement of a portion of the inactive circulation shown to be now held in re- serve, and liable to be called out as increased speculations and additional enbancement of prices mav demand, and the consequent reduction of the same to the amount re- quired by the actual necessities o. business, would seem Condon ae Heance tee hhh atooe a pant sound | tho North and South be relieved almost entirely from | own notes or notes of oihier national banks, when that | ments. . 921,001 29,582 961,502 | Jute were idle and the revenue amall. prosperity can be secured, By such a course only can | Other taxation for government purposes, as they would | debt orliability belonts to any other association’’ ex- Tax upon dividends samo as upon dividends of banks. The receipts from distilled spirits in wo place the manufacturing and producing Interests of the country in a position to compete successfully with other nations, prevent an excess of imports over exports, be if cotton is taxed to the extent proposed, their pur. | isting under and by virtue of “the National Currency | That upon the gross reccipts of premiums and assess- chases would be made at a correspondingly less price, | act.” The intention and scope of the statuteis evidently | ments was one oor ‘centum until July, 1864, payable js (ten months) were from and both North and South derive a benefit from the ope- | against such a construction of its provisions, but all am- | quasterly to the Commissioner; after that, one and one- | 5255 meseia! nove ie ration. Diguity in reference to it should be removed, All the | half por cent, payable montily to the collectors. be iethioned + 16,149,954 4208901 16,986,778 and thus prevent a drain upon our resources, whi 4 i i i % DISOMARGING TIR ARMY OF COLLECTORS, banks should be required to redeem their notes and pay | SALARIRS OF PERSONS EMPLOYED RY THE UNITKD BTATES GOV- Average taxable productions per year, from September must otherwise postpone tn an indefinite period the re- | py ghys restricting tho subject of revenue to afew ar- | their balances in lawful mouey, as well to each other as PRSSURNT. 1, 1862, to June 80, 1865, 40,637,371 gall soba ticles of generat production the cost of collection would | to the public. i: $696,181 | ‘From the fact that several of the elements involved Under the present inflation of pricas the cost of labor and of all tie elements entermg into tho production of staple commodities, whether in. agri- culture, mechanics or manufactures, is euch as to invite the direct competition ‘of all other countries in our own markets, It is this which makes our market the best to sell in and the worst to buy in on the part of foreigners, and which, in the consequent ab- sence of an adequate export demand, must eventuate m the denuding us of the precious metals and the creation of a debt abroad that will bea greater drain upon our resources than our present national debt, THE BALANCE OF TRADE AGAINST TITS COUNTRY. By a gold valuation of our imports and exports the balance that has accraed against this country during the four bye previous to the 30th day of June last, includ- ing the interest on American securities held abroad pur- chased within that time, and also taking Into due con- sideration the difference between the standard of our own and that of foreign gold (nine and three-elghtns per cent), has been 308,000,000 of dollars. By reason of the probable falling off in the export of coin, and the increased amount of interest to be paid abroad, itis estimated that the accriiny halanes during the present fiscal year will amount to $120,000,000, mak- ing a total for five years of $428,000,000. . BALANCE 18 TO B PAID. Our only resource to pay this gold balance against us has been and still is thessale of our securities abroad. The amourt required, if sold at an average discount of forty per cent, will be $713,000,000, and the annual in- terest at six per cent will be $42,780,000, The discount of forty per cent will amount to $285,200,000; every dol- jar of which will be an entire loas to the country. The aimost exclusive use and demand for gold now is for the payment of custom duties, to be paid out again for the interest on the public debt; this ia followed by the sale of the surplus beyond the amount required to pay interest, which surplus again accumulates to go repent- edly through the same process, If one-half of the diffe- rences between our imports and exports were paid in gold as they occur, the prico of gold and foreign exchange would have long since: reached a rate sufficiently high to have materially checked our im and increased ina corresponding ratio our exports. The price of gold is now governed by the demand for the purposes stated, and the foreign balances against us are paid, as be- fore shown, by the sale abroad of government and other securities at a discount of about forty iT cent; thus instead of paying, creating an addi- tional indebtedness to the extent of the difference be- tween the amount received for our sacurities and their par value, every fraction of which we shail ultimately have — in gold, in addition to the interest, It may ‘be said our exports will be increased by the addition of Southern productions, ‘This will undoubtedly be 80; but to no greater extent than our imports will tncrease, The South will need more than all the goods her surplus crops will purchase, and if we cannot compete in the open market with other nations, our relative position in reference to Imports and exports will not be improved. In view of onr position, prudential considerations would seem to point to such an adjustment of the tariff, intermediate to the resumption of specie payments, as to discourage inordinate importations. This can be done by increasing the rate of duties just in proportion as the _— of gold and foreign exchange may recede, thus ceping up the cost of importations as high as they now are, including the present rate of foreign exchenge. This could be followed by a graduated reduction of such in- crease, say ten per cent, at the expiration of each six 1,705,124 | are so uncertain and fluctuating, it is very difficult, of have encountered in its first inception it is no longer . 2,836,333 | course, to determine with confidence how much the com den od that it has intrenched itself strongly in the feel- ‘This tax is received only from those whose compensa- | sumption is reduced by the present tax, and what will ings as it has commended itself to the convenience and | tion exceeds the rate of $600 per year. and was at the | certainly be reallzed from this source of revenue, The interests of the whole people. Coming into conflict with | rate of three per cent until July 1, 1864, and afterwards | Revenue Commission bas given much attention to thie local prejudices, and assumed to run counter to private | five per cent. subject, and its report, I have no doubt, will be full and interests, it was natural that its practical operations PAasaPoRTs. exhaustive. It may not be amiss for me to state, how. should have been regarded with jealous suspicions. It | 1863. ++ $8,406 | over, that I apprehend there is a prevalent over is not among the least of the triumphs of the | 1864 11,001 | of this reduction, and in this belief I am stren; system that in a period of war, amid monctary dis- | 1865, m1 =» 27.408 | by the recent recent ‘report of the Commissioners of her turbances, caused by the gigantic requirements Tax three dollars each until July 1, 1! five dollars jajesty’s Inland Revenue,” from which it appears thas of the government, it has stood the test of | since. The amounts were mainly paid through the De- | the consumption of distilled spirits in the United King practical experiment in the most satisfactory manner, | partment of State, A small sum each year was received | dom of Great Britain and Irelaud during the yaar ending vinilicating the partialities of its friends, and overcoming | from collectors. March 81, 1852, exclusive of the amount used in the arte by its beneficial eff-cts the hostilities of its most deter- REVENUE STAMPA and manufactures, was 29,866,260 gallons, while the im mined enemiés, 1863...... $4,140,175 | crease of the exe ¢e duty in 1860 to the uniform rate of Ina try already colebrated for its commercial, | 1864. ~ _ 5,804,945 | 10s., or $2.50 per gallon, throughout the kingdom (a6 manufacturing and agricultural activity, mo want could | 1665, e 11,162,392 | which rato it still remains), only reduced the ge 4 be more sensibly felt than that of a homozencous cur- | These amounts include the receipts from stamps, re- | tion during the last year to. 26,516,531 gallons. rency, of equal value at the circumference as at | quired by schedule C as woll as schedule 8; upon’ pro- | amount was in addition to 933,649 gallons more cmployed the commercial centres of our extended country, This | prietary articles, matches, photographs and cards, as | in mannfactures and the arts, methylated and exemps could not be obtained under the restricted operations of | Well as upon written instriments, The lav in respect to | from daty, State laws, nor could :t be Curnished by institutions neces- | these duties has been repeatedly and variously modified, | _ In 1852 the tax in England was 7s. 10d.; in Scotland, sarily vircumsoribed in their fields of operation, diverse | gometimes adding and sometimes snb'racting from the | 3«. 8d., and in Ire 84. in the extent and character of thelr liabilities to the pub- | pocei; ‘The large increase of revenuo is due in no | ‘The population of the United Kingdom in 2062 was, lic, and without a recognized basis of credit adequate | small degree to the growing observance of the law. Af: | 27,500,000, and in 1864, 29,657,000. toinsuro the omg contidence in sections remote from | tor September 1, 1864, stamps were required upon match- For some years prior to the rate of duly was ami- the locality where such liabilities were payable. It is | es, and the recoipts from that source forthe remaining | form throaghout the United Kingdom at 8s. or 6s. 1@ not denied that the State banks have been of greatif not | portion of the fiscal year was probably not less than one | per gallon, and in that year it was raised.to10e. From indispensable service In the development of the resources | milion dollars, the report of the Commissioners for the following year t of the country; it is not designed to underrats their use- ARTICLES IN SCIIRDULE A. appears that the domestic uction fell off heavily— fulness, to Question thelr patriotism, or assail the z some nincteen per cent—immediately after the Pron intogrity of the banking institutions of the States; i in the rate from 24,985,192 gallons in 1860 to 20,147, but as in ail enlightened communities there will be 5 2° 779,853 | gallons in 1861, while it will be noticed that the advames gress and improvement, it cannot be regarded as invidi- | — The taxes here are specific upon carriages, yachts, bile | inthe duty was but slight when compared with thas ous to claim for the national banking system @ | liard tables and gold and silver plate kept foruse’ In | which was imposed under our laws at the superiority over the more limited system of State insti- | 1864 the schedule was increased by the addition of gold | ment of the last fiscal year. The Commissioners im tutions, inasmuch as it furnishes a safe aud convenient | watches and pianofortes, bit the’ change was made after | report of 1861 ray :— paper circulation, based upon the national credit, aud | the annual lists, in which the taxos are inclided, were | These figures ly, suggest fhe, sussticn, which thus far wed boon, bap ed wer fy fone # to | In the hands of the collectors, ‘and the receipts Teeae the whole of this large decroas adi wusbie toa ie to uniform vi rougli oon: lon the aet may continue to be, 6 are mainly from the operation of the statute ption produc tae on ngth land. LICKNSRR ‘We thin ble di regulation by ‘wbiech the satlonal banks are governed Intend: wan tapected nnd hea do red bu Tiave contributed to the unexpected of equal applicability; not only are they based upop ac- other c1usen tual and individual r-sponsibility, carefully on- weer ie nat place, Wwe now tbat tinumnalty ta de pe ey tenet i A} et mee, there is dior ‘The ip 808, hs splrita be | acerimulated in Feb ao i. tion of unparalleled security in the governm: schedule A, are almost entirely in the of the year | tion of an addition to the duty; and, on the other hand, whled. they" are required to bold, "A system thos'| subsequent to ther agserment.. The reemsemment ua. | since tho duty was rained 10s. the stocks hare been anchored, in which the whole community has a common | der the act of June, 1864, furnishes the principal excop- formly kept we ge Poss le. am a fo interest, cannot fall to subserve the highest object of its | tion to this rule. The returns are received in May, but sin te tee Seteas tar tomeinens creation, nor cease to be regarded with favor by am imtel- | tho lists upon which they are entered by the assessors ‘a time, inatend of twenty or thirty, as Hgonn peuple do not ordinarily reach the collectors until after the nd many of the large ‘who ‘hile, in conclusion, it is allowed me to congratulate | 30th of June or the beginning of another fiscal year. stores with one hundred fopeg emt Coavress and the country on the popularity which the | The increaso in 1864 accrued, in part, from the addition, ——- pag hr ee gy jrecher Regaeaty ational banking system has achieved, I woukl add the | by the act of March, 1863, to'the list of persons subject | 10vm,, Nua navies ecedsted permanentty aye ea hope that these institutions may never become subject | to duty and the 1m rensed charge for several descriptions | $f the’ trade, ‘Operating {n combination with the excessive to the schemes and caprices of political parties, but that | of license; and that of 1865 from the same source, as | stocks of the yout 1859-'60, it_ has had considerable effect om im them and through them the public faith and credit | well as from a like addition under the act of June'30, ve quantities charged with duty in that and the sae may be upheld, and the prosperity of the country freatly | 1964, and the inoressed tax pon wholesale dealers, promoted. 7 eMAN thia, there atill FREEMAN CLARKE, | which, by special provision of the statute, was imme: 8 allowance for all Comptroller of the Currency. | Giately acseased as ndditional to that ansessed andor the | p.inipe.cenclenar, which aan cely be svocoated fot Dy a therefore’ not ry prior law. foreearg of price in INTERNAL REVENUE REPORT. be greatly reduced by the discharge of a whole army of | Whatever hostilities the national banking system may assessors, collectors, &c., to the manifest advantace of the public treasury; nor would the least of the benefits fo result from this action be found in the fact that such an adjustment of the system of taxation would leave no ground for public complaint, and consequently preclude dishonest and disloyal politicians from uniting with the ‘enemies of the Union in assa ling the public credit and repudiating the national obligations, THR TAX ON GOVERNMENT SECURITIES WHICH FORM THE BANK CAPITAL. There is no question which mare vitally concerns the national banking system than the power of the States to tax the government securities which form the invested capital of the banks organized under that system. Not only have thoir investments been made upon the solemn edge of tho national faith, held out to corporations and individuals, that their stocks should be ‘free from taxa- tion by or under Ftate authority;"? but the option of re- fraining from such investment was denied to the national banks, as it was by law made a fundamental condition to their existence-that one-third of their capital should at ‘all times be held in the form of national securities by the Troasurer of the United States; and, in addition, every dollar of their circulating notes must be secured by a like deposi Hence, while individuals might havo refrained at their pleasure from placing confidence in the good faith of the government, these institutions were deprived of such liberty of action; and now, while the right of individuals to immunity’ from taxation on gov- ernment stocks is generally conceded, the like privilege is sought to be withdrawn from the national banks by their taxation for State, municipal and local expenses. The constitutional which the Supreme Court of the United States. has hitherto extended over the national securities, mo matter by whom or for what purpose held, {8 now sought to bo wrested from its hands upon the theory of State juris. dction—a flagrant violation of the contract entered into with the public creditora under the clearest enactments of law, and the most binding obligations of public faith. It is conceded for the most part by the ad- vocates of State taxation, that the United States stocks In the hands of individuals eannot be assessed for Stato municipal Wye But a discrimination against the stocks held by 8 is sought to be established, on the ground that a tax imposed upon the shares in a bank is nota tax upon the gecuritios represented by those shares, That the position assumed by those who favor this hypothesis will he found, apen critical examination, to be fallacious can scarcely admit of a doubt; that the discrimination In favor of one class of creditors and against another, both having complied with the same eonditions, is groasly unjust, must be obvious toall. That exemption from State taxation was intended to apply to th» stock issued, no matter in whose hands it might be found, cannot be questioned. No exception was made in favor of individuals; no discrimination was attempted against bunks. If the shares of a bank whose capital is invested in United States stocks be taxable, to whose benefit does the exemption from taxation guaranteed to those stocks inure? Does tho principle of immunity pledged by Congress become inoperative Lecause an ass0- cation has loaned to the government the money for which it holds those obligations? Surely, the exemption betongs to some person, and to whom can it be assigned but to the respective stockholders, whose scrip simply represents the proportionate share which cach bas contributed to the purchase of the gov- ernment securities? Upon the theory Bohs sacra an individual who purchases one hundred nd dollars teat newt ‘n revenue, oy $456,141 | “We feel justiied. In ing to the bad harvest of aatia dre | zeae lre iar neti smmapitoy Om, 567, ‘On the whole, therefore, we should infer, from a 8, up the an- tap ooeerreneet ot the year. tha although the man nual list apirits brought to charge wonld tn future not re Aggregate Receipts During the Fiscal | °F ,7'the reasons just_given. above the tax upon the in- | level usin 1809)—nearly the highest om record ah come of 1862, assessed in 1803, is mainly included in the | be entitled to reckon with, certainsy upon Sangin, Year $211,129,529, k 7, s yy Food a half a miltion months, unt] brought down to the original rate. Imports | of government stock for a specific purpose may plead and sericpa haviag been Collected” fi Tees; aud the vecetpes | sirit eepert, Kine coanery contesees, in. ast aiamel would bo held back in view of such reduction, and there | receive the exemption from State taxation which the act G Sees Stic for 1865 consist almost entirely of the tax assessed in | hundred thousand gallons. would be no overwhelming crash resulting from a sudden | of Congress pledges; but if four persons purchase the 1864 upon the income of 1863, By the anbsequent reports of the same Commissions, ‘ lected since the commencement of tl curr nt iscal if ‘bl; placed under the legislation indicated. Tn the mean: | investment, they lose all benefit of the immunity at- Bureau Demanded. car 1806 ‘nnd will uppear in the next annual report | expfetations, Gur circumstances are pot dlesitnlar. Owe time, by Lea poten] = a. A my irredeem- | tached to the securities in eT ie ED me it m this office, Asmall part of it is found in the re- | markets are now exhausted of spirits distilled before tam» rrency; and © able’ currency ; a sequent redaction of prices, we | the absurdity, of such discrimination mu suttlotontly de. de. de. ceipts of 1865, of subjected only to the earlier rates. The would be able once more to place our manufactured and agricultural productions on a footing that would enable them to enter into successful competition with those of other nations in the markets of the world. . THR FIRST STEP TO BE TAKEN IN THE WORK OF REDUC- ‘TION, As the first step to be taken towards a reduction of the vernment iseuas used as currency, sound policy would dicate the conversion of all the interest-| legal tender notes into 5-20 six per cent bonds, It is believed that the slight contraction caused by such conversion would be scarcely perceptible, more especially at this time, as it Is not probable that more than five per cent of the whole issue is now in active circulation. It would be simply exchanging one security held as an investment for another. ‘The national banks alone, as shown by their reports, held on the Ist of October last $193,004,365 in logal ton- der notes, or $22,772,462 more than the whole amount of their national bank circulation at that time; pe, also. held in notes of other banks $16,247,261, and of their ‘own notes not in circnlation $19,626,152, making a total of unemployed circulation in the hands of national banks of $228,966,758, which is several millions more than the entire paper circulation of the country om the Ist of Jan- uary, 1861, or at any previous period. Pr Pov gh pei eens pomneese, in view of the urgent demand that undoubtedly be made for an incroase of the national bank circulation, and asa gentle mode of further red the volume of ter Rotes, it is suggested that national cur- act be so amended as to allow an increase of the if the amounts collected in 1863 $279,333 were re- | plies for consumption mast now pay the existing Res tag turned at ay cent upon incomes above ten thousand | and the receipts for the current year will, Iam ‘Treascrr ry, Orrice Internat. Revence, } dollars, $172,770 at three per cent upon incomes of less | far exceed the aggregate of all receipts from the ‘asnixqtox, Nov. 90, 1865. than ten thousand dollars, and $3,637 upon incomes from | “source prior thereto. Hon. Joseph J. Lewis having resigned the oflce of | United States securities. Oc that pong a eg et It is certain that immense frauds have been perpetrs Commissioner, July 1, 1865, and his sucesssor, Hon. Wm, | $°,913,834 were returned at five per cent, $7.030,070 at | tod, for such have been discovered and prosecuted te id 14 three per cent, and $75,373 ut one and one-half percent. | judgment or to compromise; but the increast Orton, s0 lately as November 1, instant, the duty of pre- | Of that collected in 1865 $801,941 were returned at ten per | Fence and vigilance of our officers, and th paring the annual report of the office unexpectedly de- | cent, $9,934, 748 at five per ont, fo raed at three per | of oghers for special duty at distilleries, will prevent. volved upon me at #0 late a period of itself, to pre. | °¢ht and $133,402 at one and one-half per cent. Joss to the government. The Revenue Commission ben Jog tat ‘The receipts from the ten per cont tax were all from | T hype, suggest additional checks to be authorized clude the expectation of @ voluminous report from me at | taxes upon the income of 1! It cannot easily be de- | further legislation; but 60 long as avarice and falsity ase this time, while the laborious service of the “Revenue arte ttele tase? of the receipts at five per | » part of humanit; p,revenne laws, however thoroughly Commission,” with powers and duties defined in the | “Ti. ¢ special tax of ive per cent upon all ineomes above | “tne number of illic dimillations detected tn the Dike ineteenth section of the act of March last, makes it in- | six hundred dollars, as well from banks, railroads and | xingdom in 1864 was 2,757, and in 1866 3,457; appropriate that I should present my views upon such oe ah other sources, brought into the treasury | shat, with all the thorou, consequent upon subjects as may have come within ite consideration be- | $8920 Fae w ene vaniocs ronas treconcatty xawro, | Mkisletlon, lave experience, and a more, compacs fore it shall have prepared the report contemplated by | 1863. | 862, 826 ly, ade, the statute, At its request, however, I will at that time, | 1964. BE tJ must be the aim and the effort of all persons imate if desired by the Secretary of the Treasury, submit what The 1m ihe sev. with our revenue lars to insist everywhere and experience im this office shall have taught me in relation | enty-fifth section of the act of ay, nee hg og and | protection of taxpayers who faithfully discharge to the several changes it may propose in the law. somewhat increased by the act 3, 1863; stilt | Guties. further en! with ‘Increased rates under the act of In the course of the present report, however, Ishall | June 30, 1864, and twent) ‘cent additional to those COST OF COLLECTING THE REVENUR. offer a few recommendations affecting mainly the ad- | rates after April 1, 1865. it iron was taxed two dollars ‘The coat of collecting the public revenues is nesurally ministration of the law, and only those parts of it to | Per ton by the act of 1804 and during eleven months | * matter of no little solicitude to Lent gy’ oti the ending June 30 last, added nearly one and a half aail- ‘which I understand it is bot the purpose of the commis | Soni’ cathe Sh Oat tinravente, ‘The additional twenty | _ A people heavily subjected to taxation will sion to give special attention. TENCE. PROFLE UNDER TAZATION. cent to the taking effect April 1, did not in- | *rutinize the expenditures of the 1 ea matter of sincere congratulation tht, thu fe, Brea he receipe i ay. Several cause have con- ae er. of the revenue tribut secure the tax upon these artic! is taxod ba which has been put upon ‘and have ao | deli¢ved that it has almost universally been id. may othe unaietactory. 4 sabe, in the oom freely contributed of their substance to fill the national REFINED PETROLEUM AND COAL OTL. ee ee re treasury. tyme, Grete Nor will the impropriety of the proposed taxation of national banks be Jess apparent when it is borne m mind that they are already taxed by the general government to a greater extent than any other corporations or class of business. The law of their creation requires them to perform certain duties and authorizes them to exercige certain mtn Reg) for this they must pay a license. It imposes also a tax of one-half of one per cent on their deposits, one per cent on their circulation, one 1 cent on their capital beyond the amount invested in government securities, and five cent on their income or carnings. All Jers, &o. It is not through pal injustice to vested interests, and by a disgraceful violation of public faith, that the subject of State taxation should be reached. If public Not affect the price or would be held fered in market {1 a bank With the requirement to redeem at the central and ac- ceasible points mentioned, there be but little danger of bank issues exceeding the I ‘prescribed by the demands of legitimate business, 2 pear NOPE OF TURNING THR BALANCE OF TRADE AGAIN IN OUR an Under the action indiented, ft Je beloved. that the han been balance of trade with other nations would within @ rea- has been sonable time be again turned in favor of this ; ba whenover that polnt ie reached, with the perfect, conf: Soles dence which would onsuo in the convortfbility of legal ‘a the tender notes and the sxahtity Of sscue teak abeiaetea bpah g the return to and maintenance of specte would ries and bmsie catieialows eameepeeenet si a balances with foreign countries sum Although of comparatively recent origin, and yet in the monay: cents per pound paid tin coheciene, and Gepeity cobecietey Maveaners and se: | iucremsed to (aity: ‘March, 1965, it was roremae it ansesvors, inspectors and other officers emplo} rn ™ Tespective States, Territories and collec. | "ll further increased to (ty Or eae at fest five cents, oor Including of districts, an ‘cents fn 1! : APNE, accounts t shall be the duty of the Secretary of the | conts in 1865. tobando miede. bactaanret Mt ite ay 700 Treasury annually, in the month of December, to lay stoma wae eked sto ont th March, 1963, he ny an nalts ofits printing x ve In was increasea to Of- ascortall Tabular statements more specific and comprehensive Sa Sante, hore it etill remains. gi fedvottn draw’ even than required by statute have been prepared in this ‘The regularity of the manufacture has been largely | coll , Will not exceed office, and are herewith respectfully transmitted. They | qisturbed by expectation of additional duty, aa in the hs. “thle A, showing the receipts by collectors from each me wat collected In 1863 represet 056 pounds, Hel Tae by M4 the x y miiibe ren specific source of revenue, and thé amounts refunded im res! ate Re it of the bout, It wil each collection district, State and Terri! of the United *The of July, 1 yk September and the Btaton, for the fiscal year ending June 30, 1865. fee Vee nada we 183 ar bt forven ween Taide B, collections from banks, insurance, raitrond,*) | A exists bet ‘amounts and those eagel gaa oppice companion from Miwoice 2th fecratary of the 3 Ges pe C, monthly recoipts of intomnal revenue tax on Se oflcen at res ch ‘“ salarios. ‘Table D, number and value of intornad revenue sam! rs chaencter observed Prooured monthly by the Commissiongr, and month! arietng from the pd a = the infancy of its development, the national banking system has become thoroughly interwoven with all the business and interests of the country. Not only the stockholders in the national hanks, but every member of the community has an immediate interest in the stability of a currency which forms the medium of exchange and value, not in isolated sections of the country betweon particular classes, but throughout the length and breadth of the land, and by every citizen of the republic. And this system, 80 ramified and so essential to the prosperit of all classes, is based upon the national faith and reat aa its chief corner stone, and can only exist as that erodit is maintained intact. Nobly have our citizens battled for the preservation of Our institutions; freely have they poured ont their blood ‘and treasures to sustals the government im its contest with ruthless treason, and now br Lael crowned their exertions end saorific e maintenance of the national honor, tl h an uneuted [og crefiit, be- comes a ho leas imperative and solemn daty; nor can it SUS teed Ghat all just measures calculated V6 sustain the hotes with the engraved and printed signatures of the officers. The greatest protection against counterfeiting 1g found In tho written signatures of those tht whom the bills are uttered. The fact that they are written and not painted renders it incumbeng on the iter to attempt an {mit through the same instrumentality on each note. Tay make a fac-simie of the signa ture once, but in the’ very next attempt make such ® va- ration as to disclose the spurious character of the note. But a printed pignacete ing once eine the samo oo js prodfted nt ench revi of the eo merchant an engraver those of his ‘ondeanera’ stamped thereon Wo their notes executed thi this +t ate. gi,