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establishment. If, on inquiry, it {s ascertained that only ‘ue or two men of unusual capability receive these high = and that those authorized ey government are ave ratea, the explanation fails to give satisfac- tien, for the evidence is produced that higher wages than those on the government seale aro paid im private estab- Iishinents in the vicinity, The. impression that there is some unfairness is engendered, complaints and strikes fotiow or are vigilant officers who are faithful to the government become vinox'ous, and discontent pre- vails, 1 would, therefore, recommend that the acts re- repealed, forved to be NAVY YARD ABUSES, ETO. ‘The lessons Of experience will have beon lost as re- the labor employed in the construction of our pub- teachings of this war in @ great measure ould we fail to make thorough and essen- tial changes in the organization and management of our mavy yards. There has been undoubtedly a defective inistration of the yards, and a want of proper respon- @ibNity pervades the fiwhole system. Much that is wrong bas tts origin, without doubt, in the partisan character ‘wh.ch has been fosiered for years in those establishments where thougands of workmen are employed. Men are eiton pressed for positions in the navy coat much for their mechanical skill, industry and §delity to the pablic rervice as for su) or ant parti- fn servives in bebalf some active politician or party, Having obtained positions through such influ- ‘news, the appointees themselves in the selection ef workmen ere governed similar consider- mations The navy yards by these means became ‘srowded with political of whom, I ap- prehend, wore not skilful mechanics—to the détriment ‘of the When elections approach, a & system of assessments appears to have been applied, by ‘Which the workin m were taxed. by irres naible com- tor purposes. Thus tho super- ‘vieing Seo, i upon eanelve, Se Inpased ‘them, uty” vo oor lecttonoe ijccte T understand that the amounts thus Meche and olsewhere from governmont officers end en have been large. the money thue ollected was applied or disposed of is uncertain, for it without accountability. This evil has been confined ~ Ihave, on its being in an authen- my notice, issued, under your direction, torprevent these party assessments and collections I have also introduced other reguia- check existing abuses. Whether legal tions @ught not to be instituted to prevent an go demoralizing and baneful is submitted for con- A very considerable reduction of the nuraber of master and have been intro- S st i i z to have a calutary intluence. Hereafter the several candi- @ates for the position of master will be examined, and the imtments made without regard to lecality. improvements in the system of accounts have ‘also been introdaced, and will "be still further extended. The system of supplying the supplying the navy yards under what fs called “open purchase” navy agents has been dis- ontinued, and paymasters havo been ordered hereafter ‘te make these purchases. The office of navy agent was on @ yn in the Smount which the sgent silould receive, led f corrup- ton and which enriched those who chose to par- ticipate in such practices, demoralized those who held ‘the office of navy agent, tended to corrupt the suborii- the navy yards and those who furnished articles ene 4 discouraged and drove away hon- eat dealers, and finally led to attempts to cover the tracks of guilt by tochnicalities of law, which may per- arren the arm of justice, but cannot suppress the teous J of an honest public reg light abuses sanctioned by time, and ed by those who have profited and fiuence through hidden malprac- it as well as an ungracious task; his duty can be i se thfwily discharges: ‘ware of misdemeanors or erimes of this character, and Gall to expose or not strive to correct them. ‘The most efficient remedy for this state of things within the power of the De; been applied in the to re F I 8 § ¥ zg e I ae Ee i; te HH ig i Hy i § Fal tt 3s f i i HT &3 net rt Li il i i IK al it i Hl ie ae ne ik sESe eeee: it i g i E i ? 3 ( f ; HI EF | ez8 i il . | est lie ip lan Pall " if H i ; l ff a i ifr ‘ i ri ig z H ec ; whose int was imperiled, were {1 first with the conviction that to them, pro! ‘the war wouk! offer Bit limited opportunity, for Bele were not a commercial le nor addicted to mari- Ree H H ge No navel confi fow ge Hin tpt # fF i ii H to a strict neutrality, and manifested its sincerity, so far 23 we were concerned, by withdrawing hospitality to our ‘The grows proceeds of property captured since the blockade wa. instituted and condemued as prize prior to the lst of November, amounts to $21,429,543; cost x $1}616,223; net proceeds for distribution, $20,601,927. There are a number of important cases still before the courts, which will largely increase these red vessels wil! not be leas thar twenty-four million five hundred thousand dollars, and of the 50 vessels destroyed at least seven millions of dollars, making a total valuation of not less than thousand dollars, much of which was British property, engaged in un-neutral commerce, and so justly captured and condemned. - uations! vessels. and expenses, @mounts. The value of the 1,149 thirty-one miliion flye hundred NAVAL PENSION FUND, The naval persion fund at to nine million of dollars, to. whic any tax upon the people. PENSION. On tho Ist of November, 1865, the navy pension roll was ag follows:— 931 invalids, with annual pensions amounting to 1,096 widows and orphans, annually receiving.. 179,942 Persons, receiving a total amount of......$248,529 —Being poem during the year of 418 persons, re- 2,027 to an wi against pensfoners who have lost ceiving pensions amounting to $55,870. 1 call atten! gives increased where such injuries accrue to | olose of the year. The total number of deaths from Oc- 7 hone ‘a the ml service; bat as the law ins genatrued tober 1, 1 9 September 30, 1866, was 1160, being a perch en yr pi eho iad jew vany manner | Our Minister of Finance, to whose capacity 1 have rope repens ee yore iy od belie percentage of about .002 to the whole number of persons | thetr cause,’” Most of the acte, making appropriations | Mready called your attention, is far from harmonizing ‘RQ provision is made, and it is su; sion act should be revised with a view to include them, TNCREAER OF The nt compensat! penses which they are com mn of the life of a navi abroad on foreigp stations, where, whi is under the necessity of exerc in the mterchango of those cou country, ‘While giving thetr timo and thoughts, and, if required their lives to ‘country, these gallant men should not be harassed with apprehensions that their fumilies are suffering and in want, in nay pee of tho limited pay ir eat The en- hanced prices of the necessaries of fe, which are felt by ed income, have which is granted them by thei all who are dependent on salaries or a been painfully seypre on our naval officers. appeals with forde to averse to unn jon. In this connection I deem it proper also to renew the } oblis to suggestions made in my last annual report, that, for the ‘ and which still exist, the interest of the government and the country requires that a moro paid to thoso who are nateo with tho arduous and important clerical duties ‘Their salaries at present do not correspond with those paid for similar services in private reasons then liberal remuneration should be al of this D: partment. ertablishwents, and are not suflicient to secure the right | ance. class of wen for this work without entatling upon them }. zatic sacrifices which they ought not to bo required to make. | and EXPENSES AND ESTIMATES. The poltey needless expenditure. In soon as the war approach navy and the naval ox] are of a charactor which will be Ad, are to this Department. 16 BV! close of the war has enabled the De bo whole of this amotint will not be noeded for } puts off the formidable neval armor which it had as. RA EERE dake lis” Wi eaital Gately” on 9 BO ame toueiak abech Me gopananenge of Abb Separate balngous auticisaty inepe' to cover ther | sii nalonal lave winch te tke serv: life of our Unieny, | Dusialo, follow them on thelr migration toward thonorth | meroo tliat, by their good landing places Bod easy com for the succeeding ste esti | Sethe Gouna at the 1 petro Rs gered ty oti io es ney eS bar rool eg munication’ with the interior, will soon be tempting pre! pasion for the year ending June 30, 1867, are as fol. | our naval Jinbariy — down to the dimen- | 94th ferritonies of Nebraska, Dakota, Montana and vie asinen dinistor, who arrived here after the first ja sions a6 6 aires ie the mpoetant Se onspere Colorado. Infinenced by the unfriendly Indians of the | eyents had vaken place, has coincided with the opin- } sew ~d , the country will seo with relief'and | southwest, and probably incited by robel emissaries, | fon of the oxrps diplomatique, His uote is the best do- gratitnde a largo and signal reduction of national ex- | thoy maintainod active and vigorous hostilities. | Our de- | fence that could be, expressed of Chite's noble conduct, ponditare. Tneed hardly tay that this great object is | fencoloss frontier settlements were harassed; the com- | T particularly recommend to you this docuraent, agar a Iy in view by this Depart | Minication between the Missiwippi valley and our |’ Hmo delay of the steamer due on the 20th provents us a ons on the Pacific seriously inten mi. Contingent and ‘miscellaneous. This a jachides the sum $5, ‘8 for the sovommuedbtion of seamen now qi on board receiving khips, for the erection ef additional gating houses for officers in the aaa of 1 a Shed Sod, thee Jekacovet crc parle rd ake era dofenco end self- | dred aud sixty Applications for patents, and seventy ap- | boats from the Veucedora were seen coming towards the "The toucl exgenses of this department from the 4th of | “Lot the government atill extend tn Judiciohs and mo- | plications for an extension of patents, | Six thonsnnd te | beach, with tho object, as, it was afterwards Marob, 1861, to the 30th of June, 1865, embracing a pe- | derate meaecenabin fostering care to rH navy, and when. | Luudred and nincty two patents (including re-tssues and known, of taking a boat belonging to eae Eng- riod of four years and four months, and covering not only | ever the crisis shall arrive that our national rights or Onothousand five hundred aud thirt lish mi a ae ys hen so eapate. nas. ome trisca'in the purdhess\ constructiSé ana equipment of | SI Hee a ee eee ita aleway cy | fled. Seven hundred and torty-one app! Scosipaees:.| On thiat past of the bell there was a szuall pote ag oh sams Trertge Hag rle on y sia cae cate the claim which it has already £0 | but no patents isaued thereon by reason of the nou-pay: | guard, in charge of & who, eeoing the two boate the war, wero $214,170,000, an average | tite oo ished to the admiration and gratitude of | ent of the final fee. ‘ell manned, approaching, summoned them to retire, Ennual expenditore. of $72, dea Vista dealttying fe | a on oar feo aga cexsus. The Spaniards, without aisworing tho challenge, landed note that the ex of this Department rh OS 2 Secretary of the Navy. ‘The Secrotary states that the work on tho census of | immeniately aud fred at the guard; but they wore soon mencement of the war have been but nine and threo. Lcuhe ier bal seta eet of the apvropria. | repelted, having had three men wou one of whom tenths per cent of the expenditures ef the government THE INTERIOR DEPARTMENT. tion of $1,642,000 having beon exhausted and liabilities | died before the boat reached the Vencedora In their during the time, y amounting to & considerable sum remained undischarged. | fight they loft behind musket and a quantity of The third volume, entitled “Manufactures,” has been a. On our side we had neither dead nor ‘THE BUREAUS, During the eye ene of the chiefs ot tho bureaus A _ Harlan. embracing mortuary, educational and miscellancous sta- | of onsign. Cel pend ana Pedant Lr an sl oi ‘ Lustig, bas been prepared forthe public Printer, and will Of qhe cathastasm here e increasing every day, and tite sccompled ‘and patriotic officer, who an = oe It appears from the report ef the Commissioner of the vi THR UNION PACIVIC RATLROAD. » ES ee Tl otitisan pe tioe Bey Chief of tho Bureau-of Medicine’ana | General Land Office that during the fiscal yoar ending | Tho act July 1, 1862, to aid in tho comstruc- | a hurry, as we were for anything but a war. i by did not, however, equal public expectation and the feos for the same Give quarters, ending September 30, etkes of the ro tank ‘during the past “4 sisiinad ts ds will 1865, were $1,038,400. Tho cash gales for the year end- | has boon in @ satisfactory manner, from state ing Jane 30, 1865, amounted to $748,427, an excess of | Omaha, Kansas City, and Atchison, Mestward, and tse Murray commanding, arrived at this port yesterday from ve we ie amou! - 3 ‘ i i ed Fa33 gt 1865, 4,161,778 acros of public lands were surveyed. The | tho munificent subsidy of the ment, ‘to | Palmor of the West India equadren, The following is@ ting ty of ed public lands undis; give aagurance that the whole will be completed within | list of hor officers: — voller oor od. aggregate quanti carve; powed | the period fixed by law, thus furnishing a continuous Commander—Alezandor Murray. ‘and Repair | °f Septomber 39, 1865, was 122,286,036 acres. line of railway from the Atlantic to Pacific. Ite} Zinuemant—F. R. Smith. HOMESTRAD LAW. effects in promoting immigration, opening vast and rich | Acting Masters—Zora L. Tanner, Nicholas Pratt, T. M. pletion, nomoot | ‘The Homostead law bas beon in operation since the Int | Feslons of the continent it, developing ovr | Paine. ly of inoxhaustible national resources, and perpetuating ‘Acting Bn Wm. Field, Chas. Wilson. ae ot ie ronek | of January, 1863. Large bodies of land have been en- | unity of the American people, will be more and moro fet, John F.’ MeCutohoon; Second As- uisite pieces for the | tered under its provisions. Five years’ continuous reel | appreciated as it Sinnnwny pecbap yey ~g siatant, Wo A. ‘Windsor; ‘Acting dence is neccessary to tho perfection of the title of a ‘The Northern Pacific Railroad Company, ‘on the 11th Granville Lewis, John A. Pallinson; place for ‘ho construction of tron vessels, ‘Tho report of the Chief of the Bureau of Equipment and Recraiting states ‘bat the fuel account of the navy for the past two youre is $11,452,165, have play td ‘tue rebels, po ety bave been made and are bein; depots abroad. Th) ropewalk bas duriug the last cordage: ‘and tho disposal of the Inud. eluding portions of the report embraces, among | dred aud seventeon men were dispensed with, principally Seer ereey ot cotablinl tape re ~*p cate Sincellaneoee taatiers, Toferemees to the Capitok. | belonging to the Civil Engineor's department. 1865, was 118,044. ‘The Chief of the Bureau of Steam Engineering gives a tailed statement of the number, condition and I. ‘of the engines now under contract, A of pian bes pron) ‘undor the direction of the aluo bei made ciency ‘oft aveesn with different measures of expansion. ‘accommodations in the navy yards for the repair and construction of steam machinory ate insufficient for the ‘wants of the service, and additional facilities are urgent required. The Chiet of the Bureau recommends an increase of ‘and position of the chief engin the Tete not efolont to induce (iret clase ability © present time amounts another million of dollars, at least, wil! be added on the Ist of January next, There was received in July last, as interest, in currency, the sum of $292,783. ‘This fund is wholly de- rived from the government's sharo in the proceeds of captured and condemned prize property; most of it was foreign capital, embarked in foreign bottoms to aid the insurgenta, The income from this source will, if rightly busbanded, be ample to meet the requirements of the government for the payment of naval pensions, without just discrimination hands or feet, or both eyes in the naval service, The act of July 4, 1564, by Congress. ‘Thore are also several grades of naval officers for Whom | ber of RALARIES, preset ion of our naval officers is in- 220. saffictent for their support and for those necessary ex- * led to incur. Only a small officer is spent at home with ‘is family, and not an inconsiderable part of it is passed in command, ho iberal which promote friendly feclings and give character to the service aud tho Congress, and, thonch always ecessary and unwise public expenditures, I bras felt it my duty to present it for favorable conéidera- of the Department has been to prosecute the war with energy and vigor, and to avoid at all times ursuance of this policy, as ite termination prompt and efficient measures were adopted for reducing the ‘The results of theso efforts gratifying to the coun- ° le resources for the fiscal sone the total available resources from ions for the fiscal year ending a8 ay ea Lid ‘This te exclusive of wha! baa hocn and may be derived from the sglo of vessels and other property which the }] wh partment to dispose Three coal vossels and twenty one coal veasels have, during the past two years,been either lost or destroyed. In view of Increasing foreign squadrone, ar- extonded for propriety Ing a Manwactory of wire rope LAND TITERS IN ARIZONA AND SEW MEXIOO. is suggested. The number of seamen enlisted in the na’ the 4th of March, 1861, to tho Ist of May, 5 F Zz 2 é : 5 | i judged best | nation’s gratitude, Twoof them have since died. Wil- Mr. Walw ihe sugiee- | lism Hutchings, of Penobscet, Hancock county, Maine, ene Rigen cust re pcre quteenn outa, ee fe poco aay ener MW ind, are tro the aay porots mong tie ving known to ‘one becomes su ‘@ course of | which achieved our national independence. The names | of his and ‘8 corps of.| of one thousand one hundred and fifteen widows of | tensive the act bi daly 4, Teo0, "to “those ie not remarkabl, rite tho Grvenaed peidien teak wines befere Ge bot just be miley wes ox ‘and he has time yet srpska re Si, 1048, te a ire ahd genies and NEW YORK’ HERALD, FRIDAY, DECEMBER 8, 1965. 3 bombardment of Fort Fisher a appended, and will bo found hizhly Interesting. i +] ‘The Chief of the Bureau of Navigation submits the usual reports of the Naval Observ , Nautical Al- mavac, and the genoral administration of his depart- ment, Most of tho nautical instruments, and many other articles of navigation supplies, turned in from vessels put out of commission since the close of the War, appear to be availablo for reissue with some repairs and = pgs Allusion is made to the prospect, spparentiy improved, of yet being able to oe pense with foreign bunting for American flags. © | and the number to whom the pension therefore eqention of a “danger chart” of the Pacific Ocean, to | awarded was increased amounted se three bundred aud tate navigation, is in progress; and increased atten- | Fiyty. six. The whole ammbor admitted was fifteen thou- tion is recommended to the collection of hydrographic | gang ‘three hundred and twenty-eight, reauir- data in that important quarter, towards the constraction | ine an actual paymant of $1,220,785. The agsre- of ‘new chars and correcting old ones. And the im- | gifs “number of clains of widows, or other do- Peraged of a hydrographic office in this connection, | pendent relatives of soldiers of the army (ex- under the direction of the Bureau, is strongly urged 2 & | nt Rovolutionary), allowed during the sane periog was means now wanting of authoritatively promulgating 4is- | twonty.four thovsand aix hundred and ninety-three. _— &o., in any way allecting the interests of nayi- There was paid during the same year to samay tnvelids, tion. P Revolutionery soldiers, widows and other dependent rela- ann Chiet of the Bureau of Provisions and Clothing | tives, including arruarages of pensions aud expenses ge: © measures taken upon the close of the rebel- properly chargosble to the appropriation for Revolation- Hon for promptly reducing the expenses of is de &ry pensions, tho sum of $8,919,672 The totat nuin- — 5 ene the purchase of supplies au ber of army pensioners on the rolla at the close of the Slosing of the depots 1h different grctions of the country. | year ending Juno 30, 1865, wns eighty-four thoussnd on9 system adopted by the Department in suppl pag Se undred and thirty, requiring for the payment thereof, Various blockading squacrons during the war with fresh | oxviusive of expenses, an annual appropriation of peorisions B Ve great, saiisfantion w ofpcers and mes, $7,792,772. “¢ a largely to the sunitary condition of the fleets, The nu t on ort- To meet the demands of foreign service store vessels, gan s ee rena yey met get gay, which are preferred to storehouses on shore, have been Pension agencies ‘were ‘suspended in those parts of the pant to the mania headquarters of the rons. on country where the national authority was resisted and ervase in. the corps of regular paymastors 18 urgently } oval State governments subverted during the rebellion. recommended, and additional accommodations for up- | Parsuant to, orders, such avencies are being resumed esis connection with, or near to, naval stations are | whenever required for the uccommodation of restorod e ensioners, or of such as have been recently added to Psy proenadbdy: ieee tl Medicine and Surgery pre- The volin aguas have beon appointed at Richmond, ¢ ustal tables showing te sanitary condition of | Va. Noshyille and Knoxville, Tann., Little Rock, ric, i, bro. the navy. Tho number operons uuder treatment 3 during tho yeor ending Siét Desotber last was 18,688, of | RTC.Now Orleans, La. Tho. act of Febeuaty 4, 161 whom 1,373 died, and 2,671 were on the sick list at the by the act of February 3, 1853,to those who were married subsequent to January't, 1800. Under tho first named law there are four survfving claimants; under the second, ono hundred and eight: under the third, seventy, and under the fourth eight hundred and eighty, to five of whom peusions were allowed during the last fiscal year. Tue remaining widows of Revolutionary soldiers receive their pension under epecial act of Congress, During the ral year ending June 30, 1865, the names of fourteen sand nine hundred and sixty-two army invalid pen- sioners were, on origiaal application, added to the roll, CHILEAN AFFAIRS. All Spanish fe parations for Active War, dc. factories of foreign commerce. & natives or foreigners. enemy. if manufactured in hibited the payment of a pension to any one who taken or night thereafter take arms against the govern- in service, The per centage of deaths to the whole num- | for pensions within the last four age Hye age a proviso that no portion of the money shall be paid toa d'sleyal person. The names of all pensiouers resid- ing during the rebellion in the parts of the country to whiclt the Secretary adverts, as well as a large number Frag Sea pensionors residing In other portions of the Union, have been dropped from the rolis. All those of the former class forfeited their pension from the date of the prociamation declaring tho State in which they ro- ore resided to be in rebellion, Such of them as claim the benefit of the pension laws and a restoration to the rolls are required to make pop eetinns supported by due proof, in accordance with forms and instructions adopted for the adjudication of these special cases, to take and subscribe the oath prescribed in the Presi- dent’s Amnesty Proclamation. The right to a pension inures and takes effect from the dato of the completion of the proof establishing the right to such restoration. INDIAN AFFAIRS, 5 Tho number of Indians fesiding within tho jurisdiction of the United States does not probably exceed three hundred and fifty thousand, a large majority of whom maintained during the past year peaceful relations, Some of them have made gratifying progress in civiliza- tion and manifqsted, during the late war, a steadfast loyalty to our flag worthy of emphatic commendation. Civilized and powerful tribes, however, reading within the Indian territory, united early in the year 1861 with the Indians of the prairies immediately west anf north, for hostile operations against the United States. In flagrant violation cf treaties which had beon observed by us with seruputous good faith, and in the absence of any just ground of complaint, these confederated Tndians entered into an alliance with the rebel authori- ties and raised regiments in support of thetr cause. Their organized troops fought side by exde with robel soldiers, and detached bands made frequent agsau!is on the neigh- hi cases treated is .015, or lese than twaper cent. the Peng | During the progress of the war 1,406 were killed, 1,638 wounded and 176 reported missing, making tho total number of casualties in the naval service But seventy-one persons have availed them- selves of the provision of the act of Co: providing artificial limbs, The increased cost of living renders the monthly tax of twenty cents upon the salaries of officers and men uate to the support of naval hospitals, and unless some other means are devised an appropria tion by Cangress will bo required to meet the necessary exponses. A new laboratory building, at a cost of ,000, is recommended. The Colonel Commandant of the Marine corps reports the order and discipline of the corps as alike creditablo to officers and men. During the year the strength of the corps has not materially changed. Though now to a considerable extent employed in guard duty on shore, the greater part of the corps have, during the year, been actively engaced in the operations of the several squad- rong, bearing their part in the naval operations of the Their case } war. be abrogated. hospitality for a spocial pur to claim others belonging to Englishmen. The following is the moat re! CONCLUBION. In former reports, rendering an account of the ad- ministration of this department since I entered upon its duties, it has given me ploasure to make kffown my e gentlemen who have been associated with me in the conduct of its business, Continued ex- erience has decpened my sense of grateful obligations for their ability, faithfulness and industry under cir- cumstances which were often not only re- sponsible but embaarassing, and I gladly avail myself of this opportunity to again express my acknowledgment for their support and assist. In our arduous ana vastly extended naval organi- and action during the past four eventfal years, United Stat ted, asked the the tnstructiens warded to his govérnment in Washi too late, and when hostilities had begun. sian Minister. fully in the new forms of power which modern | fog ce a nota ey whioh were without adequate inventions have produced, and the now scenes of eftort i eee ge “abe uate | reia’s blockade are known in Eu Inyoutlons bave produced, cad the. how scenes of allort | means of dotenco, and dn the Indians, who maintained | Staton Tam perfectly confident that friendly relations with this government. This state of they have been so severely tried and so triumphantly tion of the Navy Department at once judicious and effi- cient. Under the pressure of such an exigency, I certainly do not claim, and cannot hope, to have always avoided mis- takos; but I do sincerely trust that tho brilliant and glo- rious naval record which shines along tho line of momentous events during the whole of this period may ‘bo accepted as proof that the br beroriel has been fatth- sent to negotiate a treaty of peace. Such preliminary arrangements were wade ag, it is believed, will result th the abolition of slavery among them, the cession within the Indian territory of lands for the settlement of civil- ized Indians now residing on reservations elsewhere, and the ultimate establishment of civil government, subject to the supervision of the United States. The perfidious conduct of the Indians in making un- cause, as he mm ail of them, which pot admit it as general to the whole coast. 140,091,125 116,781,675 quimbo, Herraduras, Tomé and 309,450 ’ Which involves an avowal of his real impotence, bas $23,309, four naaeates to p te Gada pea i ae snaceeh - petaeager provoked war on us has been visited with the severest Sino 40. Gbcititin *Winet. we -eaid “Kane Jong go that 900,450 | oltcers to wield and work it, bean generally and toa very | Teubution. ‘The country within the Indian territory has | Pareja’s blockade wus only a bit of paper. | Uis obetinacy 7 fortunate extent confided to the best and fittest hands. Ix | 0002 laid waste, vast smounta of property destroyed and | in the beginning is easily understood now. When, the 22,408,990 | the conduct of our naval operations to putthe right man eT tana vied My fo eink ele iy question vas frst put to him there were no men-of-war in 119,882,928 do the right placo has been the constant effort of the | inevitably perish duripg the preseut winter, unless ‘alparaiso; but afterwards the neutral forces were partment; and the recent history of the navy bears witn I think, that the effort not been unsuccess- ful nor fruitless. It is my pleasitig duty to add that the number of highly meritorious officers, eminent in all the requirements and accomplishments of their profession, our navy list presents, has not unfrequently em- the Depatment in its digicult task of selection. AS peace is being restored among us the country now timoly provision be mado by this govorniuent for their Telief. Hostile relations, such as have existed for several gen- erations, continue between many of the most flerce and warlike tribes of New Mexico and Arizona and the white thabitants, A considerable milicary force is necessary for the protection of the latter and the maintenance of Justice will nev faith and treacherous character are 0 evident, the neutrala, but.has occasioued t! charge at other ports. Spain will ha Such alleviations of the public burdens is the plain dictate of a wise policy. Yot trio wisdom directs that iment in the naval branch of the iblic service must not be carried far. It is still ‘wise—the wisest—economy to che! he navy, to hus- band its resources, to invite now supplies of youthful courage and skill to its service, to be amply supplied with all needful facilities and preparations for eiliciency, and thas to hold within prompt and easy reach its vast goed Brant and government trains aeeailid; proporty of great Falue destroyed, and men, women and children barbar- Quely murdered. It became the Imperative duty of the government to send military expeditions against these commission of further ation. has comprom ng being pra to ee vad During the Year ending September 50, 1868, there were | oc ome reaetts tea throwin the incident was of f -pobeien received at the Patent Otiice eleven thousand eight bun- ce it Abstract of the Report of Secretary | completed and printed, The fourth and last volume, tion of & railroad from the Missouri river to the naviga- ble waters of the and subsequent on Pacific, ject, with its hearty approval le, proof of ihe osama determ! June 30, 1966, public lands were disposed of as follows:— the triumph over our enemi The question ie are Farge | of an arrangement; m wou to ite territorial intogrity. Had it been deemed preserve Kn to rebellion, in which she now is, Chile dissovered parts becomo subjected to the contro! of separate and alien governments, the construc- tion of such ® work undertaken, and its execution would have been inn] Although, Sa oon date of the emact- ment of these several laws, regourees of the na- | what] have said before to you on the eubject. purposes was.. = wore Ma nero ped ren one ted deemed Making, during five quarters, the total num- ate lc greet thoreughtare, in ther conviction that it bd Nor et ures: eecccees ccessccces es 600K ED fra nak pedis the peg of a altos footy THE NAVY. i would ‘The cash receipts from sales, homestead and location | ‘The energy displayed in ite prosecution for two or three ARRIVAL OF THE RHODE ISLAND. mento, California, ital already invested, the high personal charac- $70,420 over the sum reooived from the same source the | Sacram h ter of the gentlemefi connected with fs Prosecution, and combine previous year. During the fiscal year ending June 30, homestoad settler, unless ho prefers to purchase the land @{ the minimam price and obtain @ patent, It is osti- mated that from forty to fifty per cent of the persons who have so claimed the privilege of the Homestead law will prefer to make payment, and thus secure a title be- fore the expiration of the period when it would other. wise vest. The nominal sum paid by the homestead set- ter, and tho fee which he pays fo the local officers, aro sufficient to cover the expense incident to the survey of December, 1864, fled their acceptance of the pro- visions of the act of Congress entitled an act grouting lands to aid in the construction of @ railroad and tele- h line from Lake Superior to Puget Sound, on the Brcite const, by the on orn route, and under date of the 6th of March last submitted thelr map designating the general diréction of their road from @ point on Lake Superior, in the State of Wisconsin, ton point on Puget Sound, In Washington Territory.’ The records of the ont do not, however, show any further action by the company in the premises. ‘MUNCELLANROUB., W. J. Foley. Acting H. Peters. Captain's Clerk—Langden 8, Rodgers. Paymarler’s Clerk—Arthut F. Haynes. MORE MEN OUT OF BMPLOYMENT. , ‘Washington Aqueduct, the government hospital for the insane, folumbla Institute for the Deaf and Dumb, Metro- politan Police, aud the affairs of the District of Colambia generally. fi The Secrotary urges, as a matter of the utmost import. THE PAY OF DISCHARGED MEN. ‘ance to tho settlers in Arizona and New Mexico, that early provision should be made by law for the adjuat- mont of Spanish and Mexican titles arising under oxiat- ing treaties with the republic of Mexico, mak! New Worka. Horsrvr: A Tate or tus O1p Dorcn Manor. = EN mey and conseq' mit come delay. BUREAU OF YONINO. By Mansfield T. Walworth. Saturday last there men have been . f this novel seems to understand the taste | the efliciont gatekeeper of the y , The attention of Congress is again invited to the organ. The writer of this pH antec as 4 — har weed of the time for the kind of literature to which ho isa contributor. People everywhere in the prosent age, and particularly in this country, want strong and intoxicating draughts for the mind. It is emphatically the age of sensational impulses, W is 80 fast, und crowded with gach successive startling events, that the novelist has to furnish o suitable stimulant to succeed. The public ful mind—reola with po- ization of @ Buroau of Mining. All lands denominated mineral, which do not bear the precious motals, should be brought toto market, and thus placed under the guar. dianship of private ownors. The Secretary wisely sug- goats that the existing Anancial condition of the nation obviously requires that all our national resources, and the product of every industrial pyrsuit, should contnbute to the payment of the national debt. PRNBIONS. ‘The act of February 27, 1865, mado sn annual allow- ance of threo hundred dollars for life to each of the five survivors of the Army of the Revolution. Four of these ‘aged and venerable men lived to receive this token of the day; but, owing to its observance as Thank: governmvat indebtedness will be duly disc THE CAULKERS’ TROUBLES. September the Navy Yard authoriti } of the caulkers ion, "y wages lacing them on ao with the ah! Pay ad aloo been re ite and succeeded in another descent was ing on the Algonquin, iu New York, by the same Union, @ur Valparaiso Correspondencc. and wore the new ki Vauranamo, Nov. 1, 1806. Ordered to Santiago—The New Repidents men went to work upon her ip # most fearl: Customs Decree—Visit by the Diplomatic Corps to defying the numerous threats of the New York cautkerg, who ordered them to desist, until they had fairly com- pleted their task. By my last letier I informed you that a doe cree had been Issued ordering all Spaniards re. siding in the republic to the city of Santiago. This act, though of excessive energy, was of absolute neces- sity in tho present circumstances, when we are iu. volved in a war with a country that respects nothing, and is quite capable of doing all sorts of damage to these defenceless towns, that should be considered only as ‘The fear that tis decree should become « source of fraud has indueed the govern- ment to issue several others forbidding the transference of the property belonging to Spanish subjects to persons of other nationalities. This will surely prevent our dis- agresable guests from deriding their engegementa with The extraction of coal has been submitted to the necessary restrictious to prevent its being sent to the The free trade decree has been equally re- stricted to goods brought into the non-blockaded the country from which the ship arrives. This restriction bhs met with @ most energetic disapprobation, it being considered as doing away entirely with the franchises before granted. with our present situation. Our principal ports being now slut up, we should grant all the franchises, so that ‘by opening a propitious way to epeculation in general, they would check the effects of the blockade, It is be- Noved a3 most probable that this last decree shall soon About the middlo of last month several members of the Corps Diplomatique came to Valparaiso with the object of having a conference with Admiral Pareja, Groat sensation was caused by this, as it was generally thought that their principal object was to settle an arrangement; but afer many commentaries on the subject it was finally kn@wn that each ree ences purpose—Signor Mighorate, the an Minister, to claim several ships belonging to Spanish sub- Jects, and Mr. Thompson, her Britanic Majesty’s Minister, le version about Mr. Nelson’s voyage—the United States Minister: As soon as the Tovira-Covarrubias treaty was disapproved, the tes Minister in Madrid, fearing that the ques- tion betweea Chile and Spain should become complica- Government for an explana- tion of the matter, and received for an answer a copy of ven to Admiral Pareja. This he for- n, who ordered Mr. Nelson to offer tho United States’ mediation in the affair, Mr, Nelson received his correspondence rather Nevertheless he desired to comply with his instructions, and to prove @ consistency of conduct on the occasion. With this ob- Ject he brought with him Senor Levenhbagen, the Prus- As soon as the numerous irregularities of Admiral Pa- and the United is whole proceed- ings will be condemued by all governments, as cuntrary ere required bim to namo the Pad which he intended to blockade, be- 4 not hag od enough to make it effectual things continued until the gurronder of the rebel forces : illustrated, an oxtraordinary opportunity has opened and wosiof the Missieaippl. Hostilities were then suspended, | 02 the. eet not Paris and r. aon rales ‘of the laws an unexampled neccesity hus existed for an administra. at the request of the Indians, commissioners wero 2 more than forty, they cou! first eluded the question; but, being pressed by tho British Commodore, Mr. Harvey, he has at last declared that the blockaded ports are Valparaiso, Caldera, Co- jcahuano. This act, superior to his; and of course he yielded. Reason and ‘bo respected by # nation whose bad Par®a, with his paper blockade, has not only deeeived i atthe same time, considerable loss by obliging ir, vessels to dis- 6 to humiliate hor- self for this, because to make her pay damages it would from knowing the part the Peruvian government will take in our present conflict. Certain facts, though, tbat we cannot revoal withont imprudence, induce us to be- eve that Pezot will learn with pleasure our difficult situ- ‘We have nothing to hope from an American who ixed his country’s dignity, and is accused of ouriggressors, and though the incident was of little im- wo the Spaniards a severe lesson. Two been promoted to the rank But who never forsakes a just cause, will give us ee. has come to such a point now that there be the best iy Tes pets to eet ons ok wit inless Bho recel Separ Cottaan ier atns weetep wi recelves@ for’ sho has endured. 7 The manifesto from our Minister of Foreign Affairs Bree a: peaiee accurate account of the proceed- of both parties. of the opinions du the matters there contained are fn perfect accordance with Washington. The Rhode Island is brought to this port to be fitted out for service as the flagship of Commodore nd Assistante, cting Third As- sistants, J.C. Veatch, D. A. Bandall, E, J. Swords, Chas. 2. es—Charies J. O'Neill, Wm. Bolton, J. W. Colton, The work of retrenchment of national expenses by reduction of the employes of the Navy Yard still goow on. On last Tuesday evening the services of one bun ‘The total number of men recently discbarged from the Navy Yard amounts to 1,899, The labor attendant upon out the pay rolls fecessary to pay these men is, juently could not be got Since the first discharge on xiously besiegi: apa Waughs paid. On inves- tigation it appears that tho rolls will be in readiness to- ving Da: no payments will be made until Senet ates ‘ sharged. Much has boon rocently said of the caulkers’ strike, both pro and com. The facts as elicited in this matter from authentic sources appear to be as follows:-—Early reduced tho 60 to $3 60 per day, thus whose them of Shortly afterwarda upon the caulkers while work- bts of the oukam and mal- Finally the Algonguia was taken across utked, and jo Jorsey- manner, It has been freuqently stated by several of the papers that great inconvenience was experienced by goverament ‘on account of the scarcity of this clase of tradesmen. Such, we are assured, is not the caso, thé present nam- ber at the yard peing amply suiticient for the demands of the serv been made with the police authorities for the thorough protection in future of the Navy Yard caulkers against the assaults of their predecessors. ' nen RR RS eT ae EE? It is undersoce that arrangements have FINANCIAL AND COMMERCIAL. © ‘Pmonspay, Doo. 7, 1865, In the House of Representatives yesterday Mr, Bing- ham offered a joint resolution submitting to the Logisla- sures of the States an amendment to the Coiatitution de- claring that the article prohibiting a duty on exports from the United States is repealed. This involves the assumption that such a prohibition actually exists in the constitution; but the question arives, does it, and is any such amendment necessary? The words of the article— “(No tax or duty shall Le laid on articles exported from any State’”’—my be interpreted as applicable to a einglo State only, aud not to the States collectively rep- rossated im Congress, and in this view it is by no means clear that Congress has not tho power to impose o tax on exports without the_gmendment; and there are those who contend that 20 long a8 the letter of the constitution is not violated its spint should bo interpréted as wo understand it, and aa may accord with existing circumstances and national in- terests, it being for us to regard the constitution, not as a fetter, but as the protecting bulwark and palladium of our liberties. ‘Tho history of the constitution goes to show that the Southern States wore in favor of a clause prohibitive of export duties in all the States, and one to that effect was introduced Into a plan of a constitution presented at the opening of the Convention, in May, 1787, by Mr. Pinck- ney, of South Carolina; but the werds ‘‘from the States,” in bis plan, were changed to “from any State,” as they now stand in the draft of the committee instrusted to re- port a constitutionpwhich, ft has been reasoned, showed that Mr. Pinckney’s general probibition 6f export taxes bad been rejected, and that the clause as it stands was adopt- ed by the Convention to prevent Congress from taxing exports from any one Stato, and not from the remaining States, and also to prevent the Legislature of any State from taxing itsown exports, The general understanding of the Convention was, however, thata tax on all exports was prohibited by the clause, which last was strongly op- posed by such men es Gouverneur Morris, Madison Clymer ahd John Dickinson in the debates. And tt would seem to be more from the debates than the constitution itself that Story aud Kent formed their opinions against the constitctionality of a tax on exporta. The people, on the other hand, it has been argued by a writer in the Nort} American Review, bad before them the constitution and not the debates whon they adopted it, and neither the debates nor contemporary interpretation are authority, however usefal they may be ‘to filustrate and confirm the text, to explain @ doubtful phrase or to expound an obscure clause,” the constitution iteelf being alone authority. Whether if tho amendment proposed by Mr. Bingham is adopted a clause should not be substituted prohibiting any inequality in the taxation of exports by Congress, as also their question entitled to consideration; for the prohibitory clanse is clear enough so far os it affecte individual States, and in this sense it should be retained. taxation by individual States, fe ao Ian amendment is really considered teoeasary to give Con- gross the power to tax experts from ‘the United States probably nothing better than a simple explanation of what miy be considered the méaming of the wenis “No taxor duty shall be laid on articles exported from any Siato” could be adopted. Thus: Mo tax or duty shall be laid om articles exported from any one State that is wt Ladd on singlar articles exported from every other State, and Congress only shall have the power to lay a tax om articles Mr. McCulloch, in his report, is candid enough to state that, finding the customs dutios exceeded the amount required for the payment of the coin interest on the pub- lic debt, he deemed it to be his duty to sell from time to time.a portion of the surplus for the purpose of supplying the wants of importers and furnishing the moans for meeting the demands upon the Treasury for currency— tho latter being doubtless ‘the prime motive. The sales of gold up to the end of October aggregated $27,993,216, the premium on which was $12,310,450; eo that the ‘Treasury derived from this source $40,303,675 ; without which we are told there would have been a nccemity for the further tesue of interest-bearing notes. As a measure of expediency it may therefore have been justified, but it was clearty in violation of the act of Con- gress, which provides fonghe application of sacha surplus to the establishment of asinking fund. Mr. McMulloch says that compliance with the requirements of the act was, by the neccesities of the Treasury, rendered imprac- ticable; but ho thinks that after the oxpiration of the present (fiscal?) year the income of the government will exceed its expensés, and it will then be practicable to carry into effect .the provisions of the law. He is, however, of opinion that the safe and simple way of sinking the national debt is to apply directly to its payment the excess of re- ecipts over expendtturos; but he does not describe the way in which he would pay it, or what clase of securities be would first seloet for reduction. He therefore re- commends the repeal of so much of the act of February 26, 1962, referred to, az requires the applitation of coin to the purchase or payment of one per cent of the entire public debt. The advirability of this course is, however, questionable, and because the necegsities of the Treasury have thus far prevented the Tressury from complying with the requirements of the act there is no good reason why, aecarding to-Mr. McCulloch's own sbowing, the ‘Treasury ebould much longer postpone obediqnce to the game. With respect to the receipt of gold on deposit by the Treasurer of the United States and the Assistant Treasa- rer in this city, and tho issuc of certificates therefor under the authority of the actof 3, 1863, Mr. Mo- Culloch says that instructions given Qo this ef. fect to promote the convenience of officers of custome and of tho Treasurer and Assistant Treasurers, and for the accommodation of the public. He mentions that other considerations—why not have enumerated them?— also prompted him to avail himself of the authority conferred by the act. He expects that the credit of the government will be strengthened by the coin which will be thus brought into the Treasury, and that the measure will tend to facilitate to some extent a return to specio payments. This last ie, how. ever, by no means obvious. There is nothing to justify the government in embarking im the banking busineer, to which ite gold deposits and certificates properly belong, and the views which Mr. McCulloch expresses apon this point are somewhat im antagonism with those with which he regards the tseue of paper money by the government in an earlier portion of his report. One fallacy stands out prominently in the midst of the general good sense of the Sccrotary’s report, and that is that “the public debt of the United States repro- vente a portion of the accumulated wealth of the conp- try.” On this principle, if our national debt were a hundred thousand millions, we should be an a na- tion very wealthy and prosperous, after the man- nor of the enterprising individual who Indicated the extent of his prosperity by saying:—“Fivo years ago 1 warn't worth a cent, and now I owe © hundred thowsagy dollars.” How does he reconcile this view of the case with what ho correctly says of it elsewhere?—namely, “It is an encumbrance upon the national estate, Neither its advantage nor ite burens are or can be borne equally by the people. Ite influences are anti-republican, It must bo distasteful to the people because ft fills the country with informers and tax- gatherors, It ts dangerous to the public virtue because it involves the collection and disbursement of vast soms of money, and renders rigid national economy almoct impracticable. It is, in a word, @ national burden.” A largo number of the mortgage bonds of the Kansas branch of the Union Pacific Railroad have been prosented at the Troasury Department, the parties holding them claiming a resorvatfon of the government bonds under the act of 1864. As government bonds have been ro- cently issued to thie company upon the affidgvit of Jobn D. Perry, President, his friends fear serious trouble may result from his of the facta when be mado the ‘The Treasury Department will bo eronerated ‘all blame in the mattor if no notice of the existence of these bonds had been presented to the department, the ect of Congress making it obligatory to thernrod iy farther pet effect will be any irae ‘donde to that company until the matter te thoroughly ‘vootignted.