The New York Herald Newspaper, January 8, 1868, Page 4

4 NEW YORK HERALD, WEDNESDAY, JANUARY 8 1868—TRIPLE SHERT., THE NATION'S REVENUE. Report of Special Commis- sioner Wells. The Causes of the Existing Commercial Depression. reported as generally ing, for the puddling and rolling of irom, for the ordi- nary labor in the manufacture of machivery, and espe- cially for the manufacture of textiles, has been very considerably reduced. On the other the fall in the ice of many staple commodities has been even more marked and significant, Thus, for example, the fall im the price of “‘middiing” cotton New York market has beep from thirty-five cents r pound in September, 1866, to sixteen cents in Novem- i, 1867; Of cottom fabrics, during the past year, from 30 to 33 per cent; of domestic w: id One, from 25 to 33 er cent, or to i than the average im any one year sinc woollens, domestic, from 25 te 30 per cel , from 85 1040 percent; of lumber, coarser qualities, 15 per cent, Umer, 20 per cont; of cote of tea (Ovjong), 12 percent; cent; of al atom (American), 20 Important Suggestion Relative to the Whis- key, Tobacco and Cotton Taxes. ‘The law establishing the office of Special Commis. Gioner of the Revenue requires that he shall investigate the sources of national revenue, the best methods of ‘wollecting revenue, the administration of existing revo- nue laws and the relations of foreign trade to domestic ‘Andustry. . Ingsbe events of the year, it would seem trdta there having any adverse infu- ‘ices through a contraction of the sy, in truth, Bas been entirely in , for it cannot be doubied shat a fail of prices equivalent, ou the whole business of the country, $0 at least ten per cont, must have been equiva. to the machinery of excuange ue pl imcrense of the cure reucy eflected indirectiy in this manuer has amounted to cannot be definitely stated, but in the opizion of the Commissioner {+ has not been less, during the last twolve months, than $10,000,000. The true thoory of legixlaiion under the present Condition*of affairs would seem to be, not to suspend or delay recovery—paintul though it may be—from ab- normal prices apa ever-production by further intlation, ‘but that relief should be afforded to the greatest extent e e ° ° . ° e s COMMERCE AND NANIGATION. ‘In the department 6f commerce and navigation the ‘Commissioner reports an increase of tonnage upon the Northern lakes apd other inland waters in excess of ‘What of any former period, the increase of tonnage en- (aged in commerce upon the lakes during the past year ‘Deing estimated at fully ftteen per cent, or about forty thousand tons (exclysive of vessels of small capacity). ‘According to the returns of the Chicago Board ef Trade ‘the increase, under the new classification, in vessels and ‘tonnage upon the lakes for the year ending March 31, (2867, over the corresponding period in 1864 was as fol dows:— Tonnage, | Possible by the romoval of taxes which infpede produc- 202,304 fae igo —, Sota fret a ape agp eee : ro) were, ‘@ certain extent jus 281,077 | But which with’ the ponte reduction of values fall ¥ The American commerce employed upon the ocean ‘has also recovered in a degrees, during the past year, (trom tts recent extreme depression. The returns of the leading railroads of the country for e ten months ending Oviober 31, 1867, also indicate an ‘increase of commercial movement over the correspond- Ang period of 1866; the absolute increase in the net pea of seventeen ef the principal wal during this period to eleven dei mile, or to 28 per centum, The month of October, 1867, is re- as pro! the most prosperous of any recorded omth in the histery of American railroads. bye’ aggregate business of the country for the fiscal mainly upon capital, The Commissioner also would call attention in this connection to the fact that while the material abate- meat or entire removal of internal roveque taxes from Particular articles or classes of articles made by the Thirty-minth Congress has proved of substantial benedt, aod has brought to the revenue system sometuiug of simplification, yet the relief experienced by the wuole country has not been proportioned to the amount of revenue abandoned, or to what the relief probably would bave been Lad an equivalent reduction been made in the form of a uniform percentage on all the so-calied industrial taxes, The reason for this undoubiediy ta, that the continued imposition of taxes om the great majority of products bas been used as & pretext or cover for refusing to make abatemont in the prices of those which wore entirely exempted or favored, and in proof of this come instances could be referred to 1a which the Teduction of taxation on particular articles was almost immediately followed by an enuancement ot thelr price, ani of maay in which the price remained nearly sta- tiowary, It cannot, however, be now doubted that a removal of all the internal taxes which materially impede pro- duction, with, possibly, some slight modiiications of the tariff, will be followed by an immediate aud great ro- vival of domestic industry, inasmuch as evidence of the most conclusive cuaracter bas beon presented to the Comm saioner showing tuat the decision respecting the continuance of removal of taxes on certain leading branches of industry wiil of itself alone determine ear 1867, a8 measured by the returns of the Internal Revenue, from the taxes on sales and 5 taxes icenses), does not, moreover, indicate any falling off as mpared with the preceding year, but on the contrary slight increase, The aggregate ameunt of the business transacted ho the leading commercial cities of the country, 4 wholesale and retail dealers in merchandise and quors, and by auctioneers and merchandise tone ‘during the flzcal year ending June 20, 1867, as dedu {trom the returns of taxes om ‘‘saics”’ and licenses’ was roximaiely as follows:— lew York, ..$1,976,565.000 Pitteburg.. ladelphia.. 616,697,000 Louisville. - Be Louis. whetner manufacturing at carreat prices shall be carried Cincinnati... oa at an actual loss, or with a smail margin of prott Inicago, + 174,245,000 SPIRITS, DISTILLED \. Of the various availabie sources of internal revenue thas of distilled spirtts ranks first inimportance, Tve attempt, however, thus far to collect any legitimate rev from this source has, as is well known, proved @ most lamentable fature, and for the following obvious reasons: Firet—The tax bas been placed at such a rete as to constitute in itself so great a temptation to fraud Sat average human nature, as it exists in the United tates, jg not able to resist it. And secondly—Tho sys- tem unger which the officers have been selected to col- Ject she tax and supervise the manufacture bas not, thus far, pny oye jonesty’, intelligence and business cape- city aa the first, only.aad essential qualifications for ap- insment. Pomme comuaissioner does not propose to enter into any argument to prove the trath of these statements, for the experience of last two years bas made thein, as it were, self-evident; but he would ask atiention briefly to what may be regarded ‘the posiiive facts of the case, The amount of distilled spirits produced in the s immediately prior to the year 1861, undo ‘oximated to ome bundred millions of gations per anoum, After that year the production greatly de. Glined; first, by reasom of the substitution of the cn distillates of petroleum im the place of buraing fluid For iliuminating purposes; and secondly, account of the tax, a greatly enhancing the price of alco. hol, largely diminished its usea industrial, entiic and medicinal purposes The {myosil! of the tax, im the first instance, probably minished, in some ree, the consumption of cheap spirits for drinking; but this influ enly porary in its duration, and ali the obtain: is to the effect that the consumption for @rivking purposes is now greater than at auy former riod, rene Present production of distilled spirits in the United ‘States theoretically availabie tor assessment and revenue 1s undoubtedly about fifty miltons of proof gallons per annum; and although statements implying a an. neal production and consumption are continually put ‘tent the basis of Gnancial by no evidence, and are Francisco, 161,225,000 Providence... 78,904,000 Newark ...... 84,396,000 In Europe, some measure of the pi rity of the people cau, ‘It is believed, be obtained ty utes the wise or fall im the consumption of certain articles, ‘which cannot be considered as belonging wholly to the catalogue of necessities—such as tea, coffee and sugar. If we now apply this standard to the present condition ‘of the United Siates, the result obtained is certainly not discouragivg. Thus, the eousumption of coilee for the eleven mouths endiag November 30, 1967, as indicated Dy the distribution from the five principal Atlantic POT, was 18.028.008 pounds as com with '4, 782,208 pounds for the corresponding period of 1868, ‘and 11,715,616 pounds for that of 1365; while the aver- ‘age monthly consumption of imported sugars for the rear 1867, deduced from the same data, has been Sarr dprer dy: sae nase Povermea avorage ‘ pounds for tne ig five years, hapten Teference in deiail to the marked in- ‘crease in number of houses erected during the past Yoer—eetimaied by authorities to be greater in apy. former year of our national existence— or increase in the manufacture of agricultural imple- }, Salt, paper, edge tools, cutlery, chains and a ty of other articles, we will cite but one other tilus- tration, drawn from domestic sources, of trength of the eountry. As has been already shown, the national expenditures, exclusive of appropriations for the redemption of the public debt and for interest, attained during the five years from 1861 to 1866 the ex- Sraordinary ayerage of over seven hundred and tweive nillion of dollars per annu: ded the great increase during the same period of State and local oxper dituren, Now, sate meee the largest portion o! money represen this expenditure was borrowed, it most nevertheless be borne in mind Bbat the average fied, is in & great , if not entirely, the measure of the labor annually furnished te the govern- ment in the form of commodities or services rendered in the army or navy ; for the war,m tee main, was conducted by means of the services of the soidiers ren- das the time, and by means of the food, clothing, ‘and material of war raise’! or made during the period Rostilities, and for which money or an acknowledgment of indebiedness was given, It therefore ap- pears that during the years from 1861 to 1866 labor ang commodities were continually withdrawn from the Productive employments of peace to the destructi Occupations of war, and that the measure of this 108, The largess amount of revenue collected in any one year, the imposition of the present tax of two dol- Jara, er been im excess of thirty millions of dollars ($20,482,078 in 1866, and $29,164,409 in 1867), or, in other’ words, the gov mnt has thus far suc- ceeded in collecting the tax on somewhat less than one jaiion of proof spirits to every three gallons that have Seen manufactured. The tax thus evaded has not, howover, enbanced price of spirits, enure an: extent, to the beneiit of the co ment, if no: on an average equ ture, plus the goverment tax, has been afford an annual aggregate of profit to the of at least thirty millions of doilars; which su 2 Stnuance thro States did not cease to make a ros! progress tion of substantial wealth. Tnua, the aggregate of the crops, measured in bulk or quantity, and not ¥, did not decregce, but increased ; rea of Serritory placed under cultivation was continually en- rg railroads conunued to be bulit, mines to be id mills, stores and dwellings to be erected. tes have now ceased and peace has returned; fend with s a change in the condition of affairs this juesiion becomes both pertinent and suggestire— ® portion of the couatry could contribute of ite surplus Jabor and capital an annual value of $21 OT per capita for destructive pur- poses, will it not be easy for the whole country, ‘with its labor and capital restored to productive employments, to contribuie $8 73 per capita for the yy inent of interest, expenses and the reduction of the Reb? and yet the payment of this sum will meet at ‘ent an annual expenditure of one hundred and forty ‘millions of ordivary expeoses, one Lundred and thirty muillions for interest and fifty millions for the reduction of the principal of the debt; and i the same rate of per €apita taxation be continued for the future, it will ox- finguish the entire principal of the dobt in less then twonty years, even if it shall become necessary to add to the above estimate of one bundred and forty millions for ordinary expense a sum equul to $2 per bead on the average annual increase of population, which average increase may be expected to augment the population of fhe United Staces, by the your 1884, to nearly sixty Millions (60 000,000), Furtoermore, this proposed rate of $8 73 per capita, wuich is only about three fourths of the rate of taxation paid in 1866, alter re- ducing the rate of that year to gold, can b> obtained ‘witbout recourse to aay of the internal taxes which ma- terially impede production, as will be clsewbere demon- Btrated ; and as ail pasi experience shows that the wealth ef this country increases in a mucu more rapid ratio than population, the burden of the uniform rate of $8 73 ita Will become aunuaily lees aad loss onerous. But notwr-hstanding tis exuibit, there are many per- fons both in public and private stations who, either tn- MUmidated by their own apprebensions or misied by their own lack of information, consider it to be their present mission io magnify the burden of the national, state ‘and local debts of the country, and to prodict for the nas tion on imability to either carry or extinguish them @ data presented sutticiently proves, however, thay #0 far ag tho material strength and development of the have more- over, may he taken as the measure of the present [nduce- ment to evade and defen: the law. Under these circam- stavces the practical question which presents itself is this: What ean 0e done to draw fromm a source, which all aro agreed should contribute largely to the expeases of the government a groater amount of revenue? ia the failure to collect the revenue from distiliee spirita bas been due, in no small part, to the fraudilent complicity and incompetency of the revenue officials is a fact that cannot be questioned, the first step, thore- fore, in the way or reform would seem to be to provide for ibe immediate enactment of a new and different administrative system. Ihe success of such a qneas- ure, however, judging from the little favor given in the Forty-nintn Congress te the so-called “Civil Service bill,’’ is, at least, doubtful; and in case the re- form under consideration should now be ordered by Con- gress come considerable time would inevitably elapse before the new sysiem could be made effective, Bul even accepting the question of reform as nettied, it is certain, in the opinion of the Commissioner, that its influence would ouly ia degree compass the end do- tired. The states of Central Europe, with a donse population and thoroughly organized police, bave also provided a civil service administration, which insures the highest degree of integrity aud capacity in iw and yet in Austria, Prussia, Belgium, Holiand mailer German States the idea of collocting any large amount of revenue from @ bigh taxon dis. tilted spirite bas been practically abandoned. lu France, furthermore, the recent advancement of the tax on spirits {rom sixty-six counts to about ninety cents por Grllon bas brought no considerable increase of revent And tue measure, iinacially, is reported to the Commis. sioner as a practical failure. ' In Russia, the goverument seoures a larce revenue trom spirits oaly by monopoliz ing the business of distilling all domestic liquors and selling the products, In Great Britain aloag is tue cul. lection of a high tax ou spirits (ten shillinge per gallon) in any degree succvssiul; but bere, coulrary to general assumption, the tax is uot in excess of that adopied in the United States, but somewhat less (viz, 78 dd. ox J levied on the tmperial galion and on» dard of proof, Iu Great britain, more over, & mixture of alcohol ts allowed to be used fur in- dustrial purposes duty free, under certain circumstances ; avd the Commissioners of Iuand Revenue, iu their Aupuai report for 1863, ‘that if this mixture bad not been devised fur che relief of our manufacturers, it would have been almost impossibie to maimiain the present Ligh rave of duty.” In discussing Guring tbe past season the expediency Of a high rate of duly with tue leadivg officers of tue Brivsh Excise, the opinion Commiselouer that wero the in aa official yeport in such @ toanuer as tends to create divirust aad @mpair credit, the Commissioner would call attention ‘the fact that of the appir wixty counties of that Sta millions of dollars, entire debt, aud add about two miilions aunuaily to the sinking fund; or, in otner words, if all other forms of fndustry of production in the state of New York suould te debt, but the apple trees to should coutinus to grow ted to this that in Ireland, where the conditions of po; arpoxe thro ism of their owners, would | police are somewhat diferent, tho tax on Fo'"Tosn than ten yours extinguish tbe whole dobt, in. | sisted to much groaler exwoat than in oi the + unliquidated cost ($15,000,000) of | Wales; th F of the Erie Can for iilicit ac being nearly \bree thousand per ‘TUR REISTING COMMERCIAL DEPRESSION. In presenting @ picture so full of encouragement in fespect to our financial and industrial future the Com- missioner does mot peed to bo reminded of de reseed condition of commercial, mercantili fai ‘affairs, for @ reference to his former reports will we that much of what bas of late occurred was both annum, whieh ratio applied to the population of the United States, would be equivalent to upward of nineteen thousand per annum, But, while admitting the resulta of European and do- ter, the oppons nn undoubtedly agai u be given in favor of the reduc: rate of $2 will appiy equally weil to almost any low: Fate that can be practically adopted; or, in Words, that the manufacturer who will cheat wit tax at §2 will cont the removal of ail may be First—lhes, tm determining the tax, there is certainly some line of oy between moderation a the i profitto be $2 tax undouvtedty tempt many to engage in illicit afaetire who would be W: Willing to do #0 with a certainty of realizing a wm rate of profit. This ident, amber oumtry bas increased ju spirtts bas been augm ple:—In the Eigoth Collection district of the State of New York there was before the Internal Revenue ‘Wout inte operation In 4008 but ong distillery; whom the ey is mot prospect ‘an early return of commercial pros- y and activity leas encouraging than in the United Commissioner, as the a and conducted im- abnormal and unsalis- com fF In his previous thi ‘eeult of a carefuliy tnati airy, wae led to refer ti Factory condition of the producing intere @ country mainly to agencies, reity of ekilled Iabor, an irredeomabio paper eurrency gad yoe Deevy taxati the gen- oral of all w Was seem in au UBDAtUrel COM. ax of twenty cents was some five or six addi- rd as to the counterfeit a 4 branding-plate pom a prevent tone dozen were in operation; but this ‘under the ‘rd The continuous ey of inpesiod package, and [ay rarreotns taieams Cece Furthermore, the tax col. | the collestion of the inspected heeds of i243 oe distillery in this same diairict 18 one month | packages once used to be used again {n the construction ry ph WA IGA ot Peataetiaving 0 large quantity of 8 tobacco the lovember 4, 1864, when | inspected and afterward removing it and substituting one ‘in one | chewing tobacco—charged with @ bigher taxs—in iw some it fo , in order to heeding Fon err ee fifty cents per gal- | from one to ten or more pounds each, to be sold without extonsive and increasing | inspection marks; the mamafacturers simply entering into ‘Borthern frontier, | @ small book the amounts, to be added UP. provinces would thea bein cor- | by the iaspector, In this manner no inconsiderable bsnl rar u.or in exneas of earns, and aneus of | proportion of “ne cat,” sold in rolls of foil, escapes entirely destroy the illicit imaaufacture ef epirits trom vuihe-An irresponsiplo person may rent a cheap bulld- molasses tm the seaboard cities, as this article (mainly | ing, purchase some old machinery, hire motive power imported) could not, by reason of its greater cust, be | obtain a license, and give bends for $3,000 for the pu used to advani a substitute for ‘The extent | pose of manufacturing amoki to which legitimate industry 1s bu; by the con- | his leaf trom another ‘atorosted timuance of the present tax was full; of the ‘Revenue Comission via deh: bun ons grow: out + law he can continue this business for sixty day: striking iMlust i r ave bis tobacco properly and faithfully marked an branded, and become tor to the government, on ht eri 25, fore the expiration of the tax on distilled trite they an Peppa tines 4 the government his machiner; pears, leaving to bv) rind pooy deny to be good—amounting in all to, perhaps, a value Ya ps She .naanctacst Se westion, thus disappearing, appears again under an: Hare another locality, ‘again successfully perpe- sp! buy or become parties, either directly or indirectly, to the sale of any spirits fer less rere As oy ot fhe cn plus the government tax, . These resolutions ve, it is believed, been faithfully adbered to, and the druggisteand chemists reault 1s thatthe ufacturi the same system of evasion, Philadelphia have experien Seventh—Tho use of cutting machines in fami- branches of their busi Mes throughout the country. The abuse of the bonding system. Under these circumstances it is not surprising that an Inquiry into the state of the tobacco trade suould reveal the following anomaious results:— ‘Smoking tol marked as properly. inspected, is reported as being extensively sold at from sixteen to when the elements of its cost fore has done,in bis previous reports, shat the atlempt be no longer persisted in on the part of the Rovenmmnaeh to cole lect a tax which all ex; shows cannot be col- Jected, and whose continuance is utterly demorulizing in i@ induence and ins high degree injurious to industry, Dat that the rate be reduced to fifty cents per gallon as ® maximum, Whether any loss of revenue would occur from any such.reduction may well be doubted, especially when ib is remembered that the goverument has thus far re- eived but a smail additional revenue in any 01 eur frem a tax of two dollars per xallon over and above what it did for the fiscal year ending June 30, 1864, when the tax was {rom twenty to sixty cents per gallon. In order, however, to insure against any loss of reve- Rue, but rather to make its increase cerisin, the Com missioner would proposes new system, based on Pian of dividing the collection of the tax between the manufacture of the spirit and its sale, and making bow a part of one and the same system. Tho leading fea- tures of this system are as Sollows:— First—To reduce the tax to fifty cents proof gallon as a maximum, and make its polenta Obligatory at the piace of manufacture; abolish ai! bonded ‘warehouses for the storage of spirits, except possibly a temporary wareroom at the ery, and forbid all transportation of spiritsin bond, Reoogutzing, also, the fact any Hem waich is coriain to briug relief “to and promote the industrial interests of the whole country is sufficient to warrant the disregard of the in- terests of a comparatively small number of individuals, the special tax or license to be imposed upou distiller mow $100, should be advanced to at leass $1,000, an $uat toe same shouid bo made applicable to rectiiiers, ‘The impracticability of the pian of collecting the tax through what is called the ‘capacity” system has been so compieiely demonstrated by the Commssiouer of Internal Revenue in bis recent report that avy further reference to it is uno le Some one of the receatly invented spirit meters may, however, afford such additional sateguards against {raud as to rel its Obligatory use most desirable. 1t shouid, however, ve borne ia miud that the use of a meter will only prove ellective against fraud in the case of dis tilleries which are known and recognized; aud that it is the secret distiilories, working illicitly, that are likely to Prove herea‘ter the most diiicult to manage. It 1s uot probable that even an efloctive reform of the administra- tive system wopld do much towards breaking up tue very large number ot iilicit stills which are believed to beim continual operation in the romote aud sparsely settled sections of our country; but for tuese a reduc tion of the lax is the only remedy, for itilicit whiakey, on the bein erg barre least tity per cent more than that produced legitimately, on a iarge scale, with tho most economical forms of apparatus, In estimating the probable amount of reveaue to be derived trom ataxof fifty cents per gallon on proof spiria 1t should also be remembered that there would be with this reduction a very large increase in the use of alcohol for industrial purposes—whicu increase good au- thorities hav. mated at from elgut to ten millions of gallons per annum. Such a resuli, turthermoro, would bring with it this additional advaniage—tuat it wou lead to no increased market for several million bushel of Western grain; and that much of the grain wuici would thus be made applicable for use, being damaged by overheating, is of value for any other pur- pose than the production of alcohol On an estimated increased annual product of from fifty- five to sixty millions of gallons of proof spiri and through the increase recommend tue “license” , tho Commis imion that: xof fifty cents per galion venue of over twenty-five miilions of ory ‘The special tax snnually imposed on retail dealers in liquors is now $25, and is at present yielding & revenue of about three millions of dollars per annum, With the reduction of tue tax on the manufacture of proof spirits to fifty cents per might be advanced to $100, ther o seven to eight cents por pound; cost in manufacturing, one and a half to two cenis; tax, fifteen cents; ing ® total not cost of about twenty-four cents, Fine cut chewing tobacco is alse largely sold at much less than its proper net cost, supposing the tax to have been paid upon it. Phe result of such transactious is, that legitimate Manufacturers are struggling to do business in the face ofa ruinous competition, while the uascrupulous are rapidly accumulating large fortunes. Respectable deal- ers also gradually yield to the apparent necessities of the case, purchase their tobacco, without question, where it is oflered the cheapest, A letter addressed to tae Commissioner by one of the leading tobacoo manufacturers of the West says: It wa fact that frauds on the revenue, in respect to to. bacco, are peas Dg oo Cay has cB pigh portion of the community asa venial offence, a1 thoy Be token for grancod tha’ manufacturers of tobacco pay only » portion of the tax. Ts is no sure evidence, moreover, because a house reports a largo tax that it 18 strictly honest—for if a portion of the tax 1s evaded they cam undersell others, and thus greatiy and unknown men fn the business, who, by the! Prices, are taking the rade, the Commissioner would also state that the books of some of the largest tobacco manufacturers in this coun- try show that tooir aggregate sales of smokmg tobacco for the whole of the last year have not been in excess of the average of sales which, before the imposition of the tax. were effected in @ single week. ‘The interests of the government require, and the people expect that a large revenue shall be collected from tovacco, but by what mechod of law and procedure the diliculues which awend the collection of the taxes im- posed on this article can be best overcome it is aut cesy tosay. In truth the suoject Ras never yet received from any officer of the government that thorough: inves- tigavion and study which its importance demands, and which have boen given to other specialties of taxation, A very sight investigation, however, would seem to os Vabiish the fact that in this, as im nearly every other department of the revenue, the main cause of tho pre- sent discreditabie condition of atfairs may be referred back directly ¢o the imperfect administration of the law, growing out of the manner in which the inspectors are selected and appointed. Remedy this and theo dillicuities which now attend the enforcing of the law aud the collection of the taxes will, in @ groat degree, be re- moved. In addition to such reform, the “trade” very gen- orally, as the result of their experience during the past few years under the interual revenue, bave united in a Tecommendation that the taxes on tobacco of all kinds be collected and paid by means of stamps, elaborately engraved, and representing specic quantities The @xact method in which the stamps siuail be used is, how- er, to some extent, a matier of disagreement among siamps sball, by requiroment of law, be allixed to every packaye, iuciuding foil and roll; and that all packages iu Xcess of three pounds in weigot suali have, in addi- tion to the stamp, the braud of an inspector. . I'he por- tion of the trade roierred to also recommend—First— That the tax be reduced trom forty to twen.y cents on wing, and from tifteen to ten cents por pound on smoking tobacco; and that in such case the prepay- m or “epecial’’ tax on distillers and rectiti sioner ns of of chewlvug aud smoking tobacco be larg aud the issue of stamps om credit by be limited to fifty or seventy-iive per amount of the bond. Other representatives of the to- bacco trade, not less inti former, recommend that require the sale of ail chewing and smoking tovacco to be made in packages to which, a siamp is affixed; that the maximum weight of package shall Rot exceed one pound; that all smaller packages shall be some iwultiple of @ pound in ounces; thas for con- ‘and simplicity im calculation the taxes be per annum. special or license tax imposed,on whole- dealers in liquors is $100 when the annual sales are Ot im excess of $50,000, and one-tenth of one per cent the acess of thatsum. The revenue ob- last fiscal year from theso taxes 6 cents per pound (or 1 cent per ounce) for wely, $932,135 and $114,715, making | smoking tobacco and cents per pound (or 2 cents 1,096,850, The special ‘tax im- ounce) on chewing tobacoo, in place of the present rectifiers is $25 for each 600 | rates of 15 snd 40 cents; tuat prepayment of the taxes and yielded the last fiscal | be made in all cases oblig ; and that all packages avory of tobaceo offered or heid in possossiva for sale without tne requisite stamp afixed and cancelied thereon be forfeited. ‘The taxed production of tobacco for the fiscal year 1867 was 45,635,000 pounds, With the adoption of the ‘staunp system and the requirement of sule in packages the Commissiover, from data turnished to bim by she trade, is of the opinion that taxes, as a ininimum, could he collected from sixty milion poends of chewing to- bacco and from thirty to forty million pounds of emok. img tobacco—thus greatly increasing the rovenue at present derived from tuis articie, Furthermore, the trade ail unite in recommending that the use of hand machines tor cutting tobacco for family use of other purposes be strictly prohibited, or made subject toa heavy special tax or liceuse; that all brands now in use by imspectors be cancelled and destroyed, and that new ones, of uniform and elaborate design be prepared and issued to inspectors by the ‘Treasury Department at Washington, aud that the re- turn of tbe same to the Commissioner of Internal Rev. enue, whoa wora out or broken, or as the expiration of office, be made obiigatory. It is aiso recommended that it be made hereafter a peval offence fur any stencil cuter or other person, Unioss employed by the departmeat of the Treasury, to cut or make any piate for ihe branding of tobacco, Iu these recommendations and suggestions of the 80,470, The total amount received olesaie dealers ia liquors and rectifiers was Commissioner would propose that the special taxes referred to under this bead shall be repealed, and that a-tax of from two to three per cont be imposed on all spirits sold at wholesale, to be paid montbiy, and a tax of ton cents per gailon on ail spirits rectified, to be paid weekly. A tax of two anda baif por cent on sales ‘end ten cents on spirits rectified will, in the opinion of the Commusioaer, yield a revenue, which canuot be easily evaded, of at least $20,000,000 rer annum, mak- ing & totel amoant of annual revenue which cao probe bly be derived from the tax on distilled spirits, under proposed system, of from $50,000,000 to $60,000,000, ‘The demoralizing ju@uence of great gain irom a suc cessful evasion of the law in the production of distilied spirits being also in a dagree taken away by a reduction of the tax in the firs instance, a largo indirect gain of revenue from other sources might’ also be reasonably anticipated. As indicating im a degree tne exieut of the traiic m spirituous liquors in the Univod states, and therefore of the probavie success of ine proposed new system, the Commissioner would call attention to the following aggregate amount of sales (iuciuding cigars and other articles) by the retail dealers iu liquors in the principal commercial cities of tne country durimg the seal year ending June 30, 1867, as deduced trom the Teceipis of internal revenue:— trade the Commissioner generally concure and is New York. 91,341,540 furtoer of the opinion that the adoption of the stamp Cimeimpall...... 69,627,250 system, coupled with the requirement as to the sale of Philadelphia. .. 68,181,120 chewing and smoking tubacco in packages with propay- New Orleans, 60,118,110 ‘ment of tax, will be found most to the inierest of the Chicago. + 40,617,230 revenue. The deiails of the pian which docs not pro- Batsimore. « 938.600.4900 pose any restriction as respects the sale in ages, St. Lowis, ...... 83,318,760 drawn up by a committee of the trade in the form of a Albany (county) 31,648,080 law, will be found in an appendix to this report, Detroit. + 19,077,720 marked D. Miuwaukeo. « 18,669,160 The pian of collecting the tax from cigars, Newark........ 18,650,800 by means of « email siamp of thin paper at- Total es «+ + $609,900,160 | tached to the “cut” or “light” end, has beea often proposed, and would seem to be not im- practioabie, If such @ plan could be adopted aud carried out, and the tax fixed at one cent on each cigar, ‘a very largo additional revenue might be derived trom tui article and at @ very small expense for collection. AS the present consurgption of cigars, domestic aad foreign, ia the Uni tow is estumaced at from o! thousand to twelve hundred millions per anoum, a tax ‘of one cent for each cigar on this consumption would tueoreticaily afford an annual revenue of from ton to tweive milions of doliais; while the receipts trom this source during the last fscal year were less than three ‘and two-thirds millions, The to.al revenue aerived during the fiscal yoar end- ing June 30, 1867, from the internal taxes on cigars and tobacco was $19,705,827. From this source during the moxt liscal year, With the present method of coliection remaining uacbanged, a receipt of twenty millions may be reasonabiy anticipated; but with reform in adminisira. (ion, and the use of stamps upon tobacco. as indicated, this revenue might provabiy be increased to $30,000,000 os 8 minimum, YERMENTRD LIQUORB The continued increave of the revenue from the tax on fermetted liquors is gracifying ; yet the amount received from this, in commou with all otber sources of interaal venue, 1s undoubtedly much less than what is legiti- mately due to the govermment. An wanual increase of out $700,000 since the metuod of collecting the tax by means vl stamps was adopted indicates that the new pian bas pot been unsuccessiul, thouga a part of the in- crease noted ts undoudiedly due to @ legitimate increase of production and consumption, especially o: iager beer. The amount of revenue \umt may be relied oa from this source during ihe next fiscal year ts about six mil- lions of dollars, ‘Tue statistics obtalued relaive to the erection of additional breweries and malting houses fur- thermore indicate tuat the production apd consumption of mals liquors, and theoretically of revenue, is now In- creasing at the race of from ton to filteen por cent per annum. Were the proposed reterms in toe ad- tminttration of the civil service to be elected, an immediate increase of revenue from this source i seven mniilioas of dollars per anoum migut, tn the opine fon of the Commissioner, bo safely anticipated. Ax an additional safeguard against fraud, it bas been proposed to the Commissioner to substitute for ti stamp a species of metailic stamp, ecu: by asimpic and ingenious device, in such INCOMR TAX, A considerable falling off in the revenue to be derived from the income tax, for the present an: jeceed ing be expected, both from the reduction the act of March 2, 1567 also from the losses recently experienced through ‘the shrinkage in the vaive of commodities, The amount, in the opinion of the Commissioner, which may be antictpated from this source the noxt fiscal year will be about thirty-five mitions Under the Put law impos exemption of $1, fiediy to all porsous retarai ance of an exemption of use almost impracticubie, may be found for the this pew method, it ii given to the Commission scribe stamps or change any now in use, should ther tucrrase f authority te to pre- be fur. 7 haracter in the original jeubtediy founded upon aa mgpta from taxation incomes Datement of £60 on all in- £200, but does not allow excess of £200, the object being not to favor the recipient of large or ample revenues, but only those whose sufficient to meet the most moderate ex, iy after the word ‘cancelled’ the following :— ‘*or shail be cancelled im such manner as the Commis- sioner of Internal Reven' doom bem.’’ tance to distilied spirits, The ley: revenue from tobacco Is, however turea In the United States the same with more difficulties tham is experienced pose has been recogni ease of distilled spirits; while the frau secured by an income the manufacture of tobacco are, in the opinion of allowed in Great Bri Comminsioner, comparatively greater. Some of principal methods, reverted to the Commissioner, by which these frauds are accomplished will be briefly mated. First—The chiet and most extensive agency by which the revenue is vena | Sosa!" tn tase, rh com- icity oF Incompetency o| in it 4 had of collecting the rev ie made so far " ent upon individua: inspectors, that whem honesty is Ugg, the check derived through inspection becomes Seeomd—T from’ income Each inspector furnishes bi enjoyed by its pos whatever atylo be choosen, and there is no little of inconsistency, for the mettiod of triets the ats of the revenue it ts “smoking” casks or packages which have jadamental principle that luzuries espe. deen inaper otber die be taxed, fn this they are especially tricts thie word is emitted, th ing “chewing” ircumstances, a house tobacco to often escape with a fifteen erat tax, when by ner but few it is required to pay forty centa Inapectors ar frequently removed; but when this | tain their brands, Tate t> prevent ins] thom:tives or other: ig an order from a peo! eauy number of far siriles and dispose ot ther Danulgojurers; or any dexierqus versoe cee imitate & ther increased by the nital otal Valeon, ond, in soy even seems reht ther if pm iqdividval tive inks (water colors)—as 1s the practice in Europe—and that some common and effective method of cancellation be made obligatory for all stamps exceed- ing twenty-five cents in value, at least as regards brokers, kers, lawyers, notaries and commercial men, having a fixed place of business, Recognizing the acoesst jepartment im this latter particular, sevoral most ingenious inventions and devices, mecha: al and chemical, havo been submitied, amd it sec! [my gs ‘that, at no distant, some pian can be adopted y the Treasury which will render the successful reuse of a stamp once cancelled all but impossible, As the law now’ stands recoils foe the payment of any sum of money or debt ex: jing $20 in amount are table to a stamp of the value of two cents; but the law does not presoribe definitely whetuer the stamp shall be affixed or cancelled by the maker or receiver of the receipt. It is believed that if the obligation was made definite and imperative upon the maker some increase of revenue would accrue, aud some cause of misunder- standing be obviated. Asa tax of this character, more- over, is not onerous, does not in any Ser impede industrial uction, and yields consiaerable revenue, \oner, with a view of increasing the reve- Bue, would recommend that the law be so amended as to make all receipts in excess of $10, in piace of $20, Mable to stamp duty. And in recommending these sateen) gvgmentnciees of taxes the Commissioner would take to aay that his object in so doing ia not a desire to absolutely in+ crease the internal revenue but to insure to the govern- ment such an amount of revenue froma few unob- jeotionable sources as will allow of the removal of those ‘taxes which are unquestionably impediments in the de- ‘velopment of the country. ‘LEGACIRS AND SUCCESSIONS, The receipts of revenue from taxes on legacies and successions ($1,861,429) have increased during the past year about $700,000; but it is clear that tue gove: Ment does not as yet collect from these. sources mui than one-half of the amount to which It is rightiull) entitled, With a view of insuring a more perfect col- lection of these taxes, the appointment of special officers charged with ecution of this por tion of the Internal ue ack would seem to be desirable, ax an itelligent and careful supervision of the transactions on which these taxes are based is nocossary to secure @ legitimate revenue. For the next fiscal year a revenue of $2,000,000 may be salely counted upon from these sources, TAXES ON GRO” REOKIPTS, BANKS, SALARIES AND MIS- OELLANAOUS, The rovenue derived during the last Oscal year from the above several sources was as follows: — From taxes on gross receipts (under which head are inculded ihe receipts of telegraph, express and insurance companies, the pas- songer receipts of railroads, sieamboats and stages, of lotteries and thoatres and for- merly of advertisoments.......+.+.0++ From bank dividends, circulation and de. ay $7,444,719 + 9,990,358 » 1,020,992 trom billiard also from From tax on salari From Miscellaneous taxes, \ tables, carriages, watches, &c. PASSPOFU, 6... +sseseeseree From fines, penaities and forveitures. Total ...eeeee + $21,957,609 Making an allowance for the repeal of the tax on advertisements, and 6. other possi deficiencies, it 1. be unreasonable to expect that subsiaatially the ount will continue to de drawn from these in the immediate {uture, The whole amount collected from theatres, museu opera aud concert halis, on accouat of the special tax of $100 imposed on the same, during the last fiscal year, was $1! ; Which amount would indicate the exisi- ence of about one hundred andjeigoty establishments of this character in the United States, The amount re- ceived from the tax of two per cent on the groas re- ceipts of such establishments was $194,090. By sub- stitating {m piace of this latier tax a fixed sum for each pertormance, to be by means of permits sold by the collectors of the ‘several disirict, under proper re- Strictions, or by «creasing the tax on gross receipts to four per cent, the anoual revenue irom this source could, it is believed, be considerabiy increased, TAX UPON RAW COTTON. Aa the cotton tax and the reasons in favor of its re- have been considered in a recent special any further detailed reierence to this subject is b omitted. If the Commissioner, however, in now adi cating the repeal oi a tax, for tne imposition of which was formerly should seem to x) fi ot eee eotoe thet reply, firat—tnat it mu importance tn: ied ould be ultimately rigut than that he should have Deen consistent; and, secondly, that the argument which was legitimate in favor of the tax when cotton was from thirty to fifty cents per pound, and the tax consti‘uted bat a fraction of the pianters’ profit, entirely fails of application whea tue price of cotton has become so greatly reduced that the tax necessarily falls upon ital. SACAPITULATION OF INTERNAL KAVENUS RECEIPES AS RSTI- MATED, It will be remembered that, according to the estimates heretofore presented of expeaditures and receipts from customs, there remained to be provided for, from inter- Bal revenue ‘the sum of $170,000,000. Of this ‘amount it is believed that the sources above referred to fo detail may be reiied on to furnish $152,000,000 under almost any contingency, without the necessity of the furtner continuance of @ single one of the so-called in- 369 iio m distiiled spi From fermented liquors......«...+ From tobacco aad its manufactures. From siamps . From legacies und succession: From banks, raiiroada, &o. From gross receipts... - From miscellaneous (schedule A, &c., From fines, penaities, &c.... Total... sesscecees cess co ++4$152,000,000 Accepting the above estimates as correct, there toen Temains to be provided for from some other sources a Goliciency of eighteen millions ($15,000,000) necessary to make up the required sum of Ove nundred and seventy millions, with such additional as may bo provisionally required to meet unexpected OF exiraordiuary comtingencies, SPECIAL OR LICRNSE TAXRS, To meet such deticiency, the so-called “special” or ‘dicense’! taxes and the taxes on sales, which bave not been included in the above estimates, may be relied on; and if t shonid be thought desirabie they may be modi- fed, with littie rouble und inconvenience to tue busi- ‘ness interests of the country, in such @ way as to aftord & large additional revenue. In faot, this class of taxes are #0 readily manageable and admit of such an indeti- nite expansion without directly impeding industry or production shat they may be considered in the light of & revenue reserve, ‘Lhe amount derived from the special taxes (licenses) for the last fiscal year was $15,156,446 60; and from sales, autioneers, aud brokers, including sales by whole- sale dealers in excess of $50,000, $4,114,075 47, making @ total of $22,300,621 97. Deducting from this aggregate the receipts from the special (axes on distillers, rectifiers, and whoiessie and rotail dealers in liquore—which 1s 1s proposed to make hereafier @ part of the now system for colectiug a Toveaue from distilled spirits—there remains the sum of $15,156,518. It is, however, recommended, in tho event of the en- tire removal of the so-called industrial taxes, to place the manufacturers and tho wholesale dealers on @ cor+ Tosponding basis, aud impose upon them a special tax of $100, when the vaiue of thoir annuat sales is not in excess of $50,000, and an additional tax of $2 for every additional $1,000 in excess of $50,000. This modiica- tion of the law will, it is velleved, ‘be generally accopt~ abie to the industrial interests of tho country and will Produce an additional revenus, over what is now ob- tained (rom the taxes on wholesale dealers, of about $11,000,000, REFORM IN REVENUE ADMINISTRATION, We come, next, to the consideration of @ subject which is dally becoming oue of increasing importance— 0 “h go, that if 1} does not soon receive, voluntarily, tical attention of toe legisiative department of @ government it will of itself ultimately, and at no Want day, compel that attention to the exclusion of of the law in repeated instances break. ing down and demanding for itsei( additional safeguards ia the nature of mechanical expedien' f a large rtion of the assessed internal revenue taxes re- ational Treasury; and of fraud and ineompetency in official positton, becom. ing daily more apparent disastrous in | But in this extibit, painful as it Ie, stated, The demoraiiati iayrace attaches to trans- iol aoe ® party, which, if com- mitted against individuals, would be universally branded as infamous The extent of the revenue frauds and of the manner, yh they are effected, have been already with urther to reports; a standing the illustrations sftorded, and tl fact that the whele subject has for some past <= s Lev) of general discussion, it is not probable thas as yet fully appreciate the magnitude of ree to which “cheating the govern. beom reduced to a ecience, Thus, for ox- ample, she fraudulent transections involved ip the manufacture and ra! distilied spirits are popularly wap} to transcend ail others, and yet, if the whoie id, in the opinion of the frauds a tobaéco and greater than in whiskey, oportion to the amount truth could be revealed, it Commissioner, be found th cigars have been comparativ: iskey or tobacco, For the continuance of this state of things there is, in the first place, no necessit; ty Aa efficient fomedy. It does not , Bal Holinod ap the German States; and what doos Bot exiat it not to be recognized as & necessity here, The response made to a question put by the Com- missioner during the past summer (0 @ leading oficial of ag the Cp the army and ina few words, is system. which secures efficioncy and Mpaeety fa the civil service of pe. The rogerh 08 the civil service of tho United States, te the Thirty-ninth Congress by the Hon, omas A, Jenckes, trom the Joint Committee on. Re- trenchaient, and the last report of the Cowmissiouer Internal Revenue, discuss so:fully the lowdi of the machinery ot civil administration whied has beew found ellective ia different couutries, thas any furiaer Feference to the subject is here unnecessary. objcetion to the enactment ef @ civil service bill of the elaracter referred to may aise from an apprehension that the test of examinaticu, a3 @ condition precedent for [ ngerr gpeiageey no, -g > treed iu office, toh sy Poel with. oe ly desiroy the power i Patrouage, Comimissionce would call attemtion to the fact that the experience of Great Britain in this matter does not confirm any such snticipation. In that country, as im the United states, the use of patronage for the sup ort of as om is considered as ont.oly legitimate, and the distribution of offices re- uired to fil vacaucies is substantially placed as the disposal of members of Parliament belonging to the dominant party. Toe metiod of procedure, however, = as follows:—be member of Pariiameat applies, in the first instance, to the Parliamentary Secretary of the Treasury, Who bas the distribution of patronage, or te the politicat head of some department, If the oflloial question is willing and able io totl e1 ber’ juest, be preseuts the applicant with what is called @ mination’? to one of the oilices in bia gift, Ihe per- jominaied does not, however, as a matter of course by the Crown, Im order to obtain this certiicate 40 applicant tor office is required, im the first 11 .uce, to execute aa affidavit respecting bis aye, Bayioat Capacity, mara character and exemption from debt, If this affidar® approved he is next subjected to an examination, the mnlastactary result of wiicu is followed vy au appolate ment to oilice, Experience now has shown that a large Proportion of the applicants for office not only fail to stain the examination, but even do not press their application for office so far asto submit themselves te the required tess; the result of whieh is that the nam- ber of persons whom a member of Parliament is able to gratify, or compiiment, by uomination to oifice is reas dered much greater thaa it would be were the noming- tion, in the firat instance, made entirely absolute. But, irrespective of the merits of ady particular plam for reforming the civ! service, one thing oughé Clearly to be understood, and that is that the present system of pulivcal pairous is, for the peor ple of the United States, a most expensive national luxury. That the Comm ssioner may not expose bine self to ihe ebarge of indulging in mere genorasiues im making euch siaiements, he submits an actual case drawn from the records of the deparimen', merely cape g the names of persons und localiti’s, lished at tho inauguration of the Ine disiricis (whom may be designated respectively as A and B) remar! similar as respecis population, wealth and the character of their business transnetions—more so, perhups, avy other two districts in the whole couutry. Im both of these districts the principal revenue officers from 1862 to 1866 were men of unusual capaely and energy, who manifested a pride as aa am interest in the dischargo of their duties; aad 80 Closely did the revenue receipts in the two disiricts approximate that those of A differed (rem those of B in the frst three years of the iniernal revenue sysicm te the extent of only $13,308 in an aggregate of over tour millions, the rece pts from A from 1862 vo 1865 having been $4,092,648, aud from B $4,085,334. In 1866 a partial public, but poliuical, sentiment in & demanded a change in tue revenue office, The momber of Congress from the district acquiesced, a3 did aleo the Execuiive and Secretary of the Treasury, while the Senate ultimately confirmed a new appointment Im district B the oficial was left undisturbed, although great efforts were aizo made to effect his removal, Siacte tue removal in question effected tie result of in- quiry on the part of the Commissioner bas showg that there has been but litue change, either as regards the business transacted or the taxes removed or abated im the One district which has not ap) the other in a nearly equal degree; yet of district A as compared with district B fell off di tho year succeeding the removal in question abou! $300, ifference between the receipts of the two districts the preceding ycar—a result mainly attributable to the tmexperionce of the new off. cial in district A and tl w subordinates w! appointed In this case, for approximate.y ea:imating ‘it cost the Treasury, an jwently the peopie of the country, for ¢! privilege of making a removal of oue efficient reven ollicer for political reasons and subsiltuting in bis place a mm entirely inexperienced. default any reform in the administration of revenue through the passage of & olvil service bili regulating the selection, appoint ment and promotion of officers, the Commissioner would suggest the expediency of detailing, by act of Congress, 10 the sdministrauon of the revenue—as revenue collectors or 11 ro cers of tsevegter otay’’ and navy, who through a re- duction of the active forces, and the necessit; keoping up a large “skeleton organization,” may afier De unemployed. The fidelity, ucation amd practicalsintelligence of these officers already been tested; and in case of any dereliction of duty or vio- lation of trast, the rules of their respective long Provide a means for prompt inquiry and punish ment ‘The Commissioner is also of the opinion thas even with continuance of the present system © Great gain would accrue to the revenue if the cities of the country could be consolidated into collection districts and placed under the charge of ose assessor and one collector, in place of the numereas divisions of a limited territory and consequent multipli~ iY, which are now ‘he experience of every State fn which the existence pend te to the of a heavy debt and the requirements for large tures necessitate the raising of large reven' effect that there is no department in which it is more essential thats nation should be wively as well as boas estly served as in that of the Departmentof Finances and that the relations of this department are, moreover, 80 closely interwoven with every form of the gow 4 and Capital of a country that good management on part of the one is a prerequisite to | grote ap the civil service #7 * scourea: of the other, reform o| agteater degree of faithfulness and efficiency in officers whose duties aro purely administ seutiai as this may be, will suficiout to ensure for our revi ment as a whole some better form of macteinery for or ganizing, inquiring, directing and adjudicating thas is now in existence. Important and responsible as aro the two offices of Secretary of the Treasury and Commissioner of Internal Revenue, the duties of r incumbents at tho presens time are necessarily to a great dogree clerical, routine work which daily accumulates upon them Special ‘ommussionor of the Reve & temporary one, there is no responsible officer attached to the Treasury Department ts se completely occupied with a routine of tive duty as to preclude the possibility o: his 14 prosecuting any original inquiry whatever ia dustry, id developments of the ry, ich the adoption of any given live of policy may exercise upon them, The tendency, therefore, of the country, so far aw the financial department of the government is con cerped, is rather to drift with the current of evente, istead of controlling it, Protitin perience of Great Britain in gnok matiers, iciomt romedy for this state ot thi will, in the opinion of the Commisst be fou im the creation of a Board of Com Revenue, and in transferring to business of collecting tho revenu internal, subject only to the gonw Secretary of tho Treasury. The Commissioner would further propose that the board be consticuted of tive members: achajrman, whe might be at the same time & Deputy or Assistaut Seore~ tary of the Troasury ; a Gommissioner of Internal Keve- nue, 8 Commissioner of Customs, and two So leitorm and that sufficient inducementa, in respect to rulary and supervision of us permanence in office, should be offered to secure for these poskions the very best talent in the country. To determination of ait this board might be referred 1) rules and regulations relating t Fevenue; the expenditures to be incurred in respect .o ti the management of all revenue processes at law, ani @ distribution of all moieties received from forfeit ures and penaities, in reward for good service and for valuable information, I should also be an essential t no oilicer of the revenve® for the proper discharge of bis 4 proved of by the Board of CONCLUSTON. It was originally the intention of the Commissioner to discuss, in connection with (his report, the reiations of t jomestic industry; the practicability of converting jes now ad valorem into specitic, and tho results of @ comparison of the prices of ial iat, and of the condi- Vions of production in the So much space has, ho sas stat t to mi subjects now beequent repost, especially as some furchor time is ecessary (o ronder thetr oxbibit more completo and satiafactory. DAVID A, WELLS, Special Commissioner of the Revenu® ———— WAVAL INTELLIGENCE, Trip of the Wampanong. ly completed, left the Navy ber, at eiahs o'clock AM, tent her engin: é an absence of twenty-three hours retui to Island to obtain additional supplics for the engine . During this time the vessel averaged jots per bour, with an average pressure of it pounds of steam. Obtaining the supplies @ vessel wont to see again, running botweem Lighthouses to further te#t her maobinory. From noon of 24 to eight P. M, of the Sd inst, a period of twonty vensol logged fiftees knots per bour with am forty pounds of steam, Tbe whole number -fifty-elght—wore im operation and particu~ was paid to the character of the fires. The {a charge assert that the mecbinery worked fnotorily, Tye weather was extromely pleasant ug the trip, With favoring winds —— sn