The New York Herald Newspaper, December 8, 1868, Page 5

‘ The Post Omee ent enn be made self-sus- taining in one way, acd that is by cutting of the | mee service in the States and Territones-where he steamship lines, thus saving $725,000. 1! 000 by ising tha Jetter carrier system f the cities, It gould economize to stent ot over ov sree bon eer Mee ea the ‘letter carriers for cities are thought to be almost indispensable, but the system costs money sud brings small revenue. {t ie all disbursement and no receipt, What if from twelve to tw four hours are saved in s] transmission of m: be- v Washington and Cincinnati, or St. Louis, or cag the whole West and Northwest’ by by velling post offices, which put off and re cetve mails while travelling at thirty miles an hour, ails, make up mails and distri- ig along? It costs se etd atc at return e safely hoarded, A timid, like this will save one ion and 'e ery dollar put out by the I- a et oy tH a] of travel and develop maverial resources Posury aura will ot ~ return det ic » bring returns velopment of material wealth and in making the nation and rich and serong.a everything of value and rest to a great peop! Ihave twice in my annual reports called atten- the gross abuses of-the franking privilege. my Cg again to speak of the frauds foetal upon the zevenues of the Post Oitice epartment by these abuses. Ihave had occasion the past year to call the attention Ingress to the use of their names mallable matter free under @ fac simitie* Three dollars will buy the suc simitié pone of any member of Congress, and the use of it by claim agents and business men in cities m sending books, Rerlogicals, lsttere and branes circulars de- frauds the department olf oi Immense sae CI ae. df ig estimated that the logs to lepar' ite is species of abuse of the franking privi- from $1,000,000 to $1,500,000 to bass year, on former i urged, order avoi the continuance of this serious cheat in the use of pames of 1uembers of Congress without thelr know- or consent, that the law be so changed as to require the writien fl ied of the person exercts- Ing the franking privilege upon the matter franked; aud to relieve the heads of departments and bureaus: of great labor that a serie 2 clerk be authorized b: Jaw tor cach department of the government, wi! the right to frank all matter pertaining to the depart- ‘ment ior which he is 80 appointed; and to relieve members of condom from great labor and care that one or more franking clerks be appointed for each House of Congress to frank such letters and public documents as it is desirable to send free through tho 1 have thus far failed to secure any attention fo these urgent appeals and am becoming satisiied that the only way to avoid an abuse whicii is becom- Ing systemized and which is 80 severe @ tax upon ‘the revenues of the department is to abolish the franking privil altogether. In the elty of Boston the government has pur- chased, for a large sum of money, a very valuabie site for a post oflice and for revenue offices. It is of Very great importance, both to the postal aud revenue service, that at as carly a day as possibie lans for buildings should be adopted and appropri- Made to erect them. There is no occasion for any delay, and every reason, that economy and public ‘Decessity can suggest, why the work sliould go iin- mediately forward, Boston is the capital of New Engiand, and the government ought to erect public buildings there which would tify the aide of that people and do honor to if, I must again <a that ateps be immedi taken to erect a suit- le post oitice in the city of New York. A most ell- le site has Bean purchased there for this purpose. necessities Of the public service demand that there shall be no further delay in this case. The buildingnow occupied for a posi office is what ts left of an oid church, diy patched and battered, full of ‘k corners and di fo emir Toe- Penetrate its gloomy interior. Gas Sit there and night, and men work by it. It 1s overan old weyard, and under its rotten floors lie skulls and nes, and the damp mould of dead men. On removing the floors for repairs a short time ago,these unwelcome its Were exposed to view. The building is unfit for any use whatever; yet there, in summer and wii-, ter, in heat and cold, by t, from night until noe ‘and from morning until night, 300 men are for the people of the whole United States Soy: draw. It is a disgrace to the city of New York i : i i ele E & its MONK. aged put out at exor- g g at Le joned atmosphere ev. a a the nation. An average of nearly men are sick all the time from laboring In that anwholesome piace. The Post Office ment pays every year for extra help on account of it asum equal to the interest on half a million of dollars. It is not always that the commercial and moneyed cen- tre of a on is the same. But the city of New York 4s both the aS and commercial centre of the ‘Western Hemisphere. In fifty it may be the ue, isthe nati tatives ought to attend to it. ‘The actual difference between revenues, indepen- dent of special appropriations, and expenditures, cluding special appro) ns, Was revenues, inde} idly in- creased to 1859 and 1860, ctrl ead de- ficiency for 1859 beingtg$6,996,000, and for year 1960 bei 656,705. Afver the year 1860 the expen- sive service in the Southern States began to until in the year there was so 1) mail service in the States involved in the rebellion that the revenues ex: the expendi- tures by $861,430. The service was almost entirely @uspended, ‘pat Bopha the war ended and during the second year of administration of my imme- diate predecessor, ending June 30, 1866, the Post- master General entered upon the serious task of the service In the insurgent States. In the Virginia, North Carolina, South Carolina, Florida, Tennessee, Alabama, Mississippi, the. cost oft service. for “the: year” cual cost ice for ie ir eudin, June 30, 1867, inc to ‘$1 so om, ro for tne year endi June 30, 1868, it increased to the sum of $2,168,459. This expendi- ture was for transportation alone, and includes none of the otber large expenses necessarily connected with = tape eng ny, a ‘States, Spe Ae year ending June the aggregate th o' Toutes Increased to 216,928 miles, and the sunt iL transportation increased to $4,224,325 miles, an tn- crease of 14,683 miles in length of routes and 6,241,516 miles in annual transportation. Since the ath day of June, 1866, and to the first day of July, 186s, ite length of mall routes has id the annual transportation miles, Since I San, to the L and last year as Postmaster General, the aggregate length of mail routes put under contract imactual operation up to the first day of suly, i is 39,008 ns and the increase of annual transportation for the time increased 12,386,411 miles, The in- crease of service and great increase of the expenses of the Gepartment for inland mati transportation have not all ariven — from the restoration of i service in the late disordered States. A large amount of the service in operation previous to the war, and discontinued during the ‘War, has not yet been restored. In addition to the fnereased and increasing raiiroad transportation, with its Increasing expenses, Congress, by a series of acts, between the Sd day of March, 1565, and the 26th day of July, 1868—a Hitie over three years—cre- ated 1,207 new iat! routes, with an aggregate length of 45,144 mile f these thirty-three Were estab- Ushed in the Tebel States, with an aggregate seagth of jess than 1,000 mile One hundred were estabilehed in the Territories, with an aggregate Jongit of 41 miles, 1 have the satisfaction of stating that cree has been rendered in the High Oourt of Cha y of the Dominvon of Canada, in the “stamp case," (the United States va. Boyd et al.), in favor of the plain tiffs. This action was brought to recover United States postage siamps of the value of $10,509, which had ) stolen in July, (864, from the steamer Miectric Spork, conveying the United States mails from New York fo New Orleans, which was captured at sea by the armed steamer Florida, a piraticat vessel, aati ing under rebel colors, The court sustained the right of the United States to the stamps, awarding costa of sult and ordering the return of the stamps to this country, The preparation of the case In this country was chiefly conducted by Joseph A. Ware, solicitor of the auditor's office, who deserves great erodit for his diligence.and skill; and the case was rowecored under the counsel and direction of baled Cushing, he report of the solicitor of the auditor's office ‘ Uublistied 1m the appendix. ora itera merece with the magneuc teleg ts one deserving (he special attention of Congress. AN independent report on ihe subject will be prepared ‘dud eubmitced for consideravion at an early my. ‘The tapid growth of the postal service of the United States sinee the presen’ organization of the Post Ontico Department was esiablisned by the act of July 2, 1896, has devolved on its officers an Amount of business of #0 extensive, varied aad respousivid a character, that a reorganization, wisely adapted & tho present and prospective condition of the ser ond *| peneowierenleretoeris —_ ~aetloable ice, 18 Mecessary to secure the test p. only eMciency in its administration. I will take an co opportunity to prepare and submit vo Congress for iis approval a plan for its reorganization. Repectfully submitted. ALEX. W. RANDALL, Postmaster General. The PResiDENnt. INTERNAL REVENUE. REPORT OF E. A. RELLINS, From this report we condense a summary of i1¢ important points, as follows: HIGHEST RECEIPTS AXD REDUCTIONS. ‘The largest receipts of internal revenue were dur- ing the fiscal year 1866, when taxation had reached its highest limits. The estimates of the reductions since that period, made from time td time, with reference to proposed legislation were:— Annually, By the statute of July 13, 1866. $65,000,000 By statute of March 2, 1887.. 40,009,000 By statute larch 31, 1868, By statute of July 20, 1868... ‘The two statutes last named swept away the tax upon manufactures, mineral oils and petroleum, and the estimate is without reference to the reduction of the rates upon distilled spirits, The receipts for the last fiscal year were from the staputes existing Jaly 1, 1867, modified by the act of March 31; 1508. ‘The statute of February relates to cotton, and re- Heved only that grown after the year 1807. AGGREGATE RECEIPTS. The aggregate recerpts from internal revenue, ex- clusive of the direct tax upon lands and the duty upon the circulation aud deposits of national banks, were for the year: 1866... $310,906,984 1867, 205,920,474 1868. 191,180,564 ‘These amounts include drawback upon goods ex- ported and sums refunded as erroneously assessed and collected, The amounts of drawback and sums refunded Were as 1ollows:— Draiwbacks. Amounts refunded, $798,808 $514,344 1,864,631 706,581 1,379,980 1,018,334 drawback in 1867 was due to the increased exportation of cotton goods and of spirits of turpentine and the presentation of claims for taxes upon articles exported prior to June 30, 1864, which presentation was stimulated by the statute of limitations barring their payment unless presented before October, 1866. In many districts railroads were taxed upon their coe receipts from freight, long after the repeal of he law imposing such tax, and the amount has been refunded, as has been also the sui of $52,858, illegal- ly assessed, in the opinion of the Attorney General, upon cotton grown on the Indian reservations. R¥CE(PTS FROM SEVERAL SOURCES. Banks, Trust Companies and Savings Institutions. 1866, 1867, 1863. Dividends and addi- tions tosurplus. . ees 3,624,774 Circulation baat 901 2,099,635 1,35 1,438,512 374,074 476,867 00,562, Railroads. 166, 1807. 1868, Dividendsand pro- fits seenee eo $2, Interest on bonds, 1, Gross receipis.... 7,614,448 Insurance Companies. 1866. 804 ‘ $2,630,174 igs $870,262 1,259,155 4,128,255 1867. 1868. Dividends and addi- tions to surplus... $767,231 $563,473 $605,480 | Premiums and as- sessments........ 1,169,722 1,326,014 1,288,745 Gross Receipts of Telegraph Companies, +$ In ‘ ceived trom the sale of one cent stam) ‘The sum of $3,231,247 in 1867 and ‘1868 was received for stamps Ot $9,540,177 in from. 4 dies for matches, perfumery, cosmetics, medicines and other proprietary articles. Legacies and Successions. $1,168,765 1,861,429 2,813,761 Th of in on the annual list of 1866, before the increased ex- emption, was 460,170. In 1867 the number was 259, in 1868 in 222 districts, from pers T was 2 \. the 18 missing districts the number in 1867 was 948, Articles in Schedule A. $1,692,791 2,116,495, 1868, 1,134,105 1866... $18,015,743 1867. 1968. . ‘The comparative receipts from several sources during the three years are presented in the fol- lowing table:— Yarra $eu7 $oni77 724 98, 91, 1,262,649 1,433,715 1,490,383 105,412 °238,155 '270,205 673,260 598,854 638,417 soleil ath oS 5 f 5,428,344 3,880,281 1,864,387 807,225 683 915, aH 531 ern "feos be eee 17,360 21,809 + 19,629 » apples, grapes. . % a rif Je seeeeeeses 580,021 663,656 656,795 Insurance agents. 104,866 148,647 152,143 Lawyers......... 264,836 357,648 383,030 Manufacturers... 1,043,030 1,206,487 1,427,638 lers. . + 679,013 708,118 724,210 Physicians and surgeons. 425,596 368 680,566 Rectifiers...... «61,900 80,470 == 87,770 ‘The act of July, 1868, will very largely increase the testers. receipisirom rectifiers and di Cotton, ++ $18,400,654 Since has been frequently changed; but as their number has alwaya been an element in determining the amount of tax it bas been practicable every ycar to compute from the returns of the local officers the number of cigars upon which the tax has been collected. From these It appears that the pumber in the fiscal brought to charge in 1866 was 95,748,951 pounds; in 1567, 46,635,681 pounds; in 1868, 44,000,880 pounds, ‘fhe reduction of the consumption of tobacco dur. ing the past year is compensated by ite increased use in the manufacture of cigars consequent upon their reduced taxation. ‘he amount scored in bonded ist day of July, 1866, was 4,123,631 pounds; 7,625,001 pounds; 1868, §,280.263 pounds. ‘The amount exported in bond during 1867 was J# pounds; 1868, 11,942,670 pounds. Fermented Liquors. ‘arehonse on the 1867, «$5,115,149 5,819,345 5,658,633 ‘The tax of $1 per barrel has been univorm during the year. bistived Spirits and Brandy, Distilied Spirtis. Brandy. $29,198,678 $285,409) 28,200,204 #65, 145 15,419,002 71,638 The falling oif of receipts tn 1868 resuited in some de- gree from the genera! expectation that the tax would be reduced and the consequent unwillingness to with- draw spirits from bond at a hig! rate, but mainly from the frauds which made su reduction indis- pensebiy necessary. In tay last annual report I dis. cussed at so great length the nature and extent of these frauds, and that, too, after so iong and so care- ful attention to the subject, that it is inne ry ior mefarther to discussthem. Their remedy lies in the improved character of the revenue and judicial offl- cers rather than in the increased stringency of the pod or approved regulations and requirements of the rt joant of spirits in bonded warehouse July 1, 1866, 6,081,661 gallons; in 1867, 17,857,272 gallons; in 1864, 27,279,420 gations. The quantity out of warehouse under transporta- tion bonde atthe ba aie A of the fiscal year 1867 and of 1568 was at each date considerably in excess ‘of 3,000,000 micas ‘There was none at the com- mencement of 1860, The quantity exported in bond in 1867 Was 4,054,816 gallons, and in 1809 4,124,199 gailons. The number of gallons removed to “Class 2 warehouses”? in 1867 for the manutacture of cos- metics, medicines, cordiais, &e., for exportation, was 92.727; while in 1868, allowed’ by law during only a vOrtion of the tine, 1b Was 98,213 gallons, . =r - BXPENSES OF COLLECTING THE that the laws can be successfull: les \d the ven under circ: wane major Part of the cost of Ri ‘and col- | revenue more fully collected: ly vindicated an gn umstances eeting the revenue is the com of local Soufaon Bice, mn mast and assessors’ ‘The power of compromise has been exercised with C1 sang meen? ors clerks, who are paid @ fixed and definite sum oer day or year, regardiess of the am acer ulng the Treasury through their services, ~ Until the statute of March, 1868, and the close of the last fecal year, it was found necessary to retain in most of the collection districts the full number of subordinate officers, and the effect of the reduction ‘since that time will not appear unt! the next aunual report of this ofice, a Bape of Asersing awd Collecting Internal Revenue for the Fiscal Yo ding June 80, 1868, 1867 ant 1688, i ne tear 1808, penses to soo 84,084,048 $4,811,685 5,181,179 + S161,710 2,453,050 9,982,271 *" sla” 15,44 " ed 35465 AGL 6120 1726 Baia 050 IAL WB!ATL—«B4,518 221000 1,328 a Peron 277,672 208,909 816,789 Stamps and cotton ‘tags... Vi7,e9 188,284 180,385. Other incidental expenses of offlee.... = (40083 87,000 1,9 ps 788,538 ADIN BIS, HB ++ -$7,089,700 8,952,686 $9,927,001 The increased cost for assessing for 1807 over that for 1866 arose from the tucreased number of collec. tion districts in the South and the employment of a larger number of officers. The excess of 1868 above the expenses of 1867 was occasioned mainly by the increase of the pay of assistant assessors from $4 to $5 perday. The number of assistant assessors in commission on the Ist day of November, 1867, Was 3,180. This number, with the sources of revenue diminished by the act of March last, has been largely reduced, and on the first day of the present montit but 2,284 were in service. ‘The receipts of internal revenue for the fisea! years 1866, 1867 and 1868, respectively, i the ratio thero- pearene expenses during the rae periods were as ‘ollows:— Years. Gross collections. Refunded, Drawback, 1866. + $310,906,984 $793, 866 ; 205,920,474 1,864,631 1 191 180,004 1,379, 080 U mm Net Col- Years, lections, 1866, . $09,593,273 1867.. 263, 032,686 1868.. 188,782,240 1 PROBABLE RECEIPTS FOR TIE PRESENT FISCAL YEAR. It has always been dislicult to make any accurate estimate of the receipts for the future from internal taxation. The frequent modifications of the laws themselves, the varying condition of different manu- facturing interests, the shifting values consequent upon paper currency, together with other disturbing elements, have materially affected the worth of data collected at this oftce, from which otherwise the re- ceipts for any fiscal year could be foreshadowed with considerable accuracy. ‘The reduction of the sources of revenue has now, however, somewhat diminished these embarmas: ments, and the collections for the current year can be caicnlated with reasonable certainty. The foliowing tabular statement -presents the ag- gregate of certificates of deposits by collectors re- coived at this office during July, Augusi, Septamber and October for the fiscal years 1867, 1863 aud 1869, respectively :— Sade Bepenses. $7,689, 760 1888, 1867, <$27,079,103 $24,754,606 $16,080,649 « 38,043,340 17,848,061 13,900,385 3,714,718 13,183,690 9,760,796 1 26;414;430 14,480,636 10,092; Of the amount collected in 1867 thera was from m- $43,408,065; in 1838 $17,733,714, and in 1569 c 817. i herewith present, also, the collections from the several sources of revenue during the first quarter of the present fiscal year in comparison with those of like character during the corresponding period of the fiscal year 1868. The monthiy abstract of the collector of the Fifth district of North Carolina for August, 1863, and of the Collector of the Third distrlet of Louis- jana for September have not been received, and the coilections in their districts for the months stated are not included in the receipts for 1869:— July, August Judy, Ang. nad of and Sept Fiscal Yoar of Spirtts. 1568, Year 6), Spirita distliied iro; vat- ever materials. +. $3,726,352 $6,021,629 Spirits in bond July 20, 1508, tax of $4 per barrel......-- — 1,071,898 Distitieries, per dicm tax. = 572 Distillers, special tax. . 65,270 66,479 Recttflers, special ax. 29,458 738,578 Compounders of liquors, spe one - 7,348 1) liquor, spectal + 1,214,999 1,007,971 OT, BPE 215,969 ‘Tobacco, & Perit . 2,709, 26 Tobacco, smoking, all ‘tems, &c.; fine cut shorts, &c.... $54,057 465,610 Dealers in leaf tobacco, ep 7s 16,634 bacco, 8 - 89,431 mace tobace: cigars, special tax. . 24,580 Total... $4,205,673 cesccccrecsccccces ee BOy Fermented Liquor: $1,619,615 * $1,722,018 96,877 63,583, $1,716,492 $1,790,601 Fermented liquors. . Brewers, special tax. Total.... Gross Receipis. Canals, ferries, ships, barges, &c., and steamboats, + $134,124 $100,894 Express companies... 146,398 169,282 293,019 292,092 873,100 $27,325 129,570 134,202 $1,676,213 $1,514,756 191,319 93, 980 96,498 69,052 Manuft otherwise ificaily taxed - 849,729 All other lections = from OB. scenes cersrseencceser 37,384 36,741 74,203 $1,739,51: $14,631,978 $8,189,870 Income. Income over $1,000. Bank dividends, profits, &c. 1,021,004 = 1,166,446 Railroad companies’ divi- dends and undistributed POM... 60 seseeseecee eevee 664,455 966,164 All other collections from in- COME... 6. cee ee ee + 862,433 650,097 Total...... + $16,870,862 $10,973,119 Banks and bankers, special tax and tax on capital, cir- culation and deposits. + $1,090,661 $886,073. Other speciai taxes. 053,221 2,969,427 les... 820, 278,590 Successions. , 254,005 Articles in schedule A 497,00 900,342, Passports 14,695 8,64 Gas... 318,076 MI I2T Sources not otherwise herein a, enumerated, in- luding cotton and mana- factured arivies. 11,866,928 874,430 Penalties, &c.... 260,160 306,402 Stamps, other than those for spirits, tobacco and fer- 4 mented liquers.........-.. . 3,122,970 Salaries of United States ofi- cers and employés...... eee 220,850 Grand total...........+ woes $53,397,963 620,893 ‘The principal cause of the reduction in the aggre. gate receipts of 1869 below those of 1968, as shown abo the repeal of the tax upon manufactures, careful consideration of the above and of which the Lag ed limits of my report wiil not allow me to | eam! confidently believe that the receipts for the present*flacal year Will reach tne surD of $145,000,000. STAMPS AND THEIR MANUFACTURE. All adhe®ive revenue stamps are manufactnred by Messrs. Butler & Carpenter, of Philadeiphia, for twenty cents per thousand. ‘This price inciudes the cost of packing in a manner auitabie for transporta- tion and of delivery to an agent of the government in that city, upon the requisition of this oftice, in fa- vor of purchasers and others ordering stamps in dit- ferent parts of the country. The number of stamps covered by these requisi- tions during the last three years ed follows 1868, General stamps... 162,814,377 140,502,294 118,606,255 Stamps for pro- prietary articles. 226,192,746 239,300,590 248,840,077 UNITED STATES COURTS AND ATTORNEYS. It Is the duty of district attorneys, under act of March, 1867, to make report to this office, at the close of every term of court, of suits brought and the con. dition of all suite or proceedings in which the United States 1s a party, The times and character of these reports prevent the distribution of the suits througt ferent flacal years with positive accuracy; but the followiug statemnents are believed to be measurabiy correct for the year 1868;— Number of suits brought in federal cour’ 5,205 Of these the number of proceedings («rem WAS. ccc ccsesseeccersessers see . 204 Number of indictments found and filed. 108th Number of other proceedings in persvnai 1.0% Judgments recovered in proceedings for Convictions on indictment, somefinciuding more than one person Nuaiber of acquittals..... Number of suits decided tu favor of United States . 749 . zig es of suits decided against United a a eee eee seen eee ee weaneaen ere eetee oa2 Namber of suits settied or dismisved. 64 Number of suits pending July 1, 1868 2,006 Amount of judgments recovered in suits IN DETEONAM A oo ccee secesecees QT41,707 Amount collected from judgments and pakl AMLO* COUT... sceeeeeesensece esses 127,810 Proceeds of frofeitures paid into courts. 1,156,159 The fee bill of district attorneys, I beiteve, should be modified so as to give larger compensation than now for the faithful prosecution of criminal proceed. ings. It is through these and the imprisonment of otieuders, rather tian irom penalties aud fori eitures, NEW YORK HERALD, TUESDAY, DECEMBER 8, 18968. ar tet 5 —TRIPLE SHEET. great care, and oniy upon the recommepdation of the local revenue officers or district attorneys and the approval of the Secretary of the Treasury. No fileged violation b; disiillers has been compromised excep, “Pon the opinion of the government atiorney that the dnpgee was technical, or could uot be proved to the ie & ‘The fuidiher of cases compromised during the year ‘Was 526, ee Sa, fs OAT hr From these there was received as tax. $419,043 Assessed penaities, fixed by law... + 142,003 In lieu of fines, penalties and fomfeltures.., 592,027 DISTILLED SPIRITS—OPERATIONS OF THE NEW LAW. ‘The remodelling of distilleries io conform to the Jaw and the regulations and the ereetion of distillery warehouses have been the occasion of great expense and delay to their proprietors, while the survey of distilleries, the procurement and distribution’ of stamps, the preparation of forms and regulations, and the greatly increased correspondence conse: quent upon the inauguration of the new law, bas im posed iin immense labor upon this ofice and upen | the local oMicers of the discrict where distileries are situated, The number of distilleries registered and thus far reported to this office, including those not intended for present use and mose for distiliation of fruit, is 1,900. ‘The plans of 316 distilleries, other than of frait, have been reveived and fled, as tn accordance wiih the iaw and regutations, aud ouuers have been re- turned for correction, Distillery Warehouses have been established to the number of 459, From the reports of the storekeepers it appears that 204 distilleries are in operation, with an aggre- gaie daily producing capacity of 227,768 gallons. The number of cluss B warehouses existing on the Ist day of July last was . ‘thelr number was gradually aud rapidly reduced until the ist instant, When the number wis 172, contaiuing manufactured tobacco and most of the spirits distilled prior to the aet of July 20 and still im warchouse, The statute now in operajion contains many im- provements upon that of 1566, is fulier aud more definite In its exactions, pla the distilleries and their operatious more completely in the hands of the governinent and is nu: rigorous tn its punishment of offenders, but its successful operation after all must depend upon tue vigilanes and Ndelity of the local oiiicers, ‘The corruption of storeKeepers, tant assessors, even when asses: are ubove suspicion, will always s n Co honest taxpayers and 1038 to 'Y, Which neither (he wisest legislation nor the Most stringent regulations of the depariment can close. Since ihe date of the present statute, however, there has been a large reduction In the number of iitcit stills in most parts of the country. Thos? properly registered and authorized have paid, it 13 believed, a greater proportion of their liability than under tile previous law, and tie receipts have been In marked and faveralile contrast to those of the cor- responding time last year. BPIKIT METERS, Tt will bo remembered that the joint resolution of February 3, 1868, providing for the appointment of a commission to examine and test spirit meters, fur- ther provided that, until the report of the commis- mision and additional legislation upon the subject, awit work on the construction of meters under direc- tion of the department should be suspended. Although this report was laid betore Congress in March following, no action was taken thereon until the act of July 20, by which the Commissioner of Internal Revenue was authorized to adopt and pre- seribe for use such ineters as he should deem neces- sary. On tho 19th of November meters had been placed in eleven distiticries, and their attaciment to others is being prosecuted as rapidly as circumstances, in- cluding the opposition of distillers, will allow. Lam advised that several distilleries have been closed by their proprietors to prevent the application of meters, All meters are attached under the immediate direction of a government oMeer, by whoin the ac- curacy of each insirument is tested. DIRECT TAX, Under the authority of the fourteenth section of the act of July 28, 1866, the Secretary of th easury suspended, until January 1, 1868, the collection of the airect tax In the States heretofore ia insurrec- tion, and a like extension until January 1, 1869, was autiionzed by the joins resolution of July 23, 1863, ‘The loyal States, with the single exception of Dela- Ware, assumed the amounts apportioned them, and paid the same from their treasuries, After several years of delay, the State of Delaware continuing to refuse such assumption and payment, the assess- ment and collection of the tax was commenced by the oiicers of the internal revenue, and are now nearly completed. Indeed, the fall assessment of $74,083, the tax assigned, has been made, and $64,924 have been collected. ‘The total amount of tax apportioned to the eleven insurrectionary States was ¥6,163,981. Of this there have been collected $2,270,608, at an expense of $243,451, inclusive of expenses of sales, and exclu- sive of salaries of commissioners. ; ‘The tetal amount reported to this office as pro- ceeds of sales in the States of Virginia, South Caro- lina, Florida, ‘Tennessee and Arkansas, is $450,419, Ot this the ‘sum of $128,029 consists of lauds pur- chased by the commissioners on behalf of the gov-, ernment when the same were old for taxes, Purchases of lands to the cost value of $77,561 were made in South Carolina, A part of the lands 80 purcha:ed has been leased, aud a part, by order of the President, resold for educational perpouss. ‘The unsold tracts in South Carolina, not under , have passed into the custody of the Freedmen’s Bureau by force of the act relating to this subject passed July 16, 1865, ‘The uncollected tax of the insurrectionary States, amounting to nearly $3,000,000, is a lien upon ali the Teal estate upon which the same is assessable, LIMITATION OF COMMISSIONERS’ AUTHORITY TO KE- FUND TAXES BRRONEOUSLY COLLECTED. ‘The authority vested in the Commissioner of In- ternal Revenue to refund taxes erroneously coliectea has been the means of preventing. much expensive litigation, and has afforded sper and inexpensive relief to many persons who have been compelled to pay more than was legally due. While a withdrawal of this authority would be productive of great hard- ship in many cases, | am satisfied that @ statutory limitation of the time within which such ciaims must be presented would tend to prevent much abuee. When the of an assessment is not seriously questioned at the time it 1s made the evi- dence in Ks support is very apt to pear with a change of the officers of the district, and it 1s not theu dificalt fora skilful attorney to present rea- sons in support of a claim for refunding such a8 are hard to be set aside. Different persons succeeding one another in the office of commissioner will natu- rally have ditferent views as to the interpretation of kage of the statut and be whose claim has ted may present it anew, after a change of ofticers, with reasonable hope of better success, I would recommend that no claim be al- lowed unless it is presented within fifteen months from the time when the tax was vaid. BANKERS’ AND BROKERS’ SALES. I have heretofore in my annual reports expressed the opinion that the attempt to collect taxes by means of stamps upon instraments having no perma- nent value for purposes of evidence would prove a failure. peg yens 3 rather than severly of punish- ment must be relied on to support the sanction of penal statutes, When both the maker and receiver of au instrument believe that the paper will pever come under the eye of a revenue officer it matters little what penalty iadenounced for the omission to amx a arene the writing is of such a character that its invalidily as an instrument of evidence is of slight consequence evasions of the tax will nata- rally result. ‘To no one of the various stamp taxes now imposed do these considerations apply with eo force than tothe memoranda required of brokers when making sales of com and be ities, eee meimorauds are in no sense ew of title, in fact, they are only ences pasged in obedience to the statute requirement, and are soon thrown aside and destroyed. If stampa have been aMixed they can easily be removed, and it is hardly necessary to make an attempt to efface the cancellation army eee placing them ao another memoranda, So little scrutiny is bestowed upon these papers as they pass from brokers that specimens have been presented of stamps which had been issued by gentlomen of the highest respecta- bility while bearing plainly the marks of two and even three successive cancellations, Durlag the fiscal year 1864, when the (ax upon sales of tits de- seription Was paid montiily to the collectors, the re- eipis from u fa ree were in excess Of $2,500,000, fa Angust, . the tax was reduced from twentieth to one-hundredth of one made payable by stamps; but at the same tir changes were made fn the terms of the statute as to render subject many sales which had before cs taxation, and thug to sume extent Lo counteract the effect of the reduction in rate. Sin time the sales of stamps have been scarcely larger than t fore, aud 1 am satisded that a retura to the f method would secure 4 more thorough enfor of the law and yield much rich TAX OF NATIONAL HAS TURNED AND PAID TO th - » 10th section of U 1864, 1) and di eogaged in t Thad appiicauon tot Natlonial Currency ac &tax upon the f persons an e88 Of banking, lis ne banks organized under th sucu banks baying a liket of the Cnited States, A which were in exister have been converted into natlo closed np thetr business, the amounts 1 this office from this source have shrunk to a very stall amount, although the actual revenue bas pro- bably increased, While those banks which are affected by the ope- ration of the revenue jaw are required to pay their taxes at the end of each month, the national banks pay only semt-annoally. This discrimination was adopted when the policy of the goverument required that every inducement uid ve presented for the couversion of state into national associations, and it wad thought that this comparative infrequency of returns by the latter would prove such inducement. Now that the national banking system has 80 com- pletely superseded ail others, the reason for the dis- Uuction jails, and @ there suggestion seems enough to show that the revenue law should be made alike Pf ee] to all who are engaged tn the same kinds usiness, REVENUR STAMPS CRON RECEIPTS. The written tstruments subject to stamp duty are, with few exceptions, prepared b; one familiar with the requirements of law, and at places where stamps of the proper denomination ark kept, and when necessary may be attached without incon- venience, Among these exveptions receipts for money or the payment of debta exceeding twenty dollars are the most prominent, These are often iy to the Treasurer the State banks tax was lraposed i banka or have when compliance with | e law would be exceedingly inc cuventent it not | impossible, and by aud to people lwnorant ofthe ob- | ligations which the law imposes. It tius often hap- | pens that @ person innocently issuing va unstamped receipt may be put in peril of prosecution, while a rson iugocently receiving i way dud, too inte, | ‘hat the ours refuse to recognize it and that he is | Wyonged ithout remedy. aml gonvineed that there ts no form of taxation Which, producing 84 INUCh Annoyance to the t payer, yields so little fevenue to the government’ and I recommend that receipts be stricken trom tho | schedule of instrumenis subject to stamp dut THE OFVICR OF COMMISSIONER—A BEPARAT 1 — ee MENT, yareitsciitnme The bili reported fy the Committee of Ways and Means at the last session of Congress, proposed to | create this office into a separaie department, with the Commissioner at its head, instead of continuing it, as itbas hitherto beet, a bureau of the Treasury Departinent, My experience long ago conyinced me that euch a change would be productive of great benetls to the service; but the subject could ao read Hy be maxie to assume personal and partisan aspects that Ihave hitherto refrained from its advocacy. Judging from the pust, the ssage of no general revenue law can be expected until near the close of the approaching session; aud as the change, ifmade, will tua coincide with the incoming of a mew ad- ministration, the questton ean now be considered solely in the light of fs administrative merits. | ‘The erection of this ofice into a separate depart- Tent would conduce toa more vigorons‘and thorough entoreement of the law in (he first place by sreatiy simplitying the work in the ofice of the’ Commis- sioner, So vast is the volume of business Mowing through the Treasury Departinent that it is manifestly impos- sible for ti etary to make himself fatuliar with all its details; and the same may be said of the missioner ane the vusiness Of his oiice. rienced officers and clerks in this bu their entire attention to Apecial portion are necessarily better informed tian others can be of thew particular requirements, and the peculia conditions of business or trade vo whieh they applicable, When the Commissioner ti mine upon proper regulations to be or ordets to be issued, “ue does so 4 auitation with those of his subordin most familiar with the subject maiter-in a nections. Lis own lack of uequamiane is thus corrected, and a ate a BT r e Lo deter. Avlished, si of injury rather tha practicatiy impossibic for tho: ployed to confer us freely with the Secretary as they do with the Commissioner; and in such revisions the beneit of their experience ia in a large measure lost Under tue present relations of tue Lo oilices, 80 many questions pass from one to ine otner that the Secretary is coustantly compelled to adopt the opinions of his own immediate subordinates, instead ol forming a personal judgment of his own, sad thus the caretuily reached conclusions of te Com- missioner may be overruled by clerks without legal and Bully responsibijity, ‘Thé separation would prevent the necessity for the Joint action of the two ofiicers, which is often attended with considerable delay, even when promptoess is an indispensible element of suc 1t would loeate responsibility which is now divided, aud clothe the Comunissioner with more than a seeming anthority. The benefits of the proposed change would arise especially, however, from 1s renderiug more direct and single the responsibility of the local officers. One applies to the Secretary for instructions, while another, called to act perhaps in the same case, takes direction from the Commissioner, Those inclined to disregard his directions ud a plausibie pretext im some assumed difercnce of opinion between him and the Secretary. Those who are striving for the same end find themselves working at cross purposes, while the consequent confusion encourages the, wrong-doer and disheartens the uprignt. Objection has been made to the proposed separa- tion on the ground that the customs revenue has been successiully managed without it; but it should be borne in mind that the entire responsibility of the execution of the customs? laws is vested in the Secre- tary of the Tresury, the Commissioner of Customs under the law acting only a8 an accounting officer, or discharging, such functions as may be devolved upon hii by the Secretary. ‘The laws relating to internal duties and customs are framed in tmany particulars with reference to each other, The ofiicial regulations under them, especially those covering the storage and movement of bonded property, are oftentimes not dissimilar. The ‘Treasury Department within a recent period has ween enlaryed, hot alone as other executive de- partments have been, by the immense increase of its former varieties of business, but by the addition of several bureaus, either of which, a few years ago, would have peen regarded as su(icient for an inde- pendent department. _{t is too large now, and its in- terests are too complex and diversified for the super- vision of @ single officer. L believe the public interest would be best sub- served by the erection of anew department, which should embrace the collection of all the national Tevenues excest those derived from tie sale of the public lands. Tam, sir, with great respect, your obedient ser- ant, KB. A. ROLLINS, Conunissioner. Hon. H. McOuLsoou, Secretary of the THE CURRENCY. AUS. 5 and a dtvts Bank of Attios have beon finally closed enn cad tae creditors of forty-e 21 ‘The aitatrs of tie First National Tank of News have been finally closed ;\ the government claims Were paid in full and a dividend of forty per cent aid to the general ereditors. A partial dividend has ndeclared to the creditors of the Parmery’ and Citizens’ National Bank of Brooklyn, N. Y., of fifty. dive per cent, and to the ¢ Jroton Na- tonal £ , Cent opon all claims approv NOTES ISSUED. ‘The following statement exhibits the number and a Mf notes issued, redeemed and outstanding October 6, 188 Issued. $8,806,576 Redeem 254,764 Outstanding. ......s6c.++ By6HL,822 $8,041,822 Tasned... 320 Redeeme: 73,178 baer ttcd Outstanding... nad 2,904,954 $6,800,968 ves. Issued... 23 iedeentiea iota ean Outstanding... $113,123,980 issued . Redeemed. oe. Outstanding... $77,725,550 Issued. . 386,440 Redeen "797,100. Outstanding.......+ $45,050,340 Issued. $17,759,050 Redeem 862,800 Outstanding. $16,896,250 Issued... $26,735,000 Redeemed. 1,658,300 Outstanding $25,176,700 Issmed..... $6,743,000 Redeemed. 79,500, Outstanding. . 11,727 $5,863,500 One Thousands. david tno Issued Redeemed. 1,846,000 Ontstanding.....ceecceee 2,900 $2,900,000 Total ot all denomimations outstanding fi ‘on the first Monday of October, 1563.. $299,806,110 Add for fraginents of notes outstandin lost or destroyed, portions of which have been redeemed. .......sseeeeeeee 455 Total. ....ceee seeees $209,806, 505 LOAD NTS. The following is @ statement of loans and dis- counts made by national banking associations, 1867:— Number of Aggreqata States ana Territories, —Distinet | dnount af Disoounts, Discounts. Maine... 87,833 $50,703,340 New Hampshire. 13,329 11,030,942 Vermont... + 30,652 19,085,570 Massachusetts. + 182,800 392,562,189 Rhode island. + 27,058 67,036,314 200 105,487,600 « 645,322 1,668, 141,362 + 111;830 vee 274,182 13,439 45,396 7,814 23,607 9,303 4,169 8,174 723 SOL 1,765 rates 7,810 Ohblo. 75,454 Indian: 480 Dlinol: 65,395 Michigan 35,518 Wisconsin + 80,279 13,810 29,008 14,669 1,650 Nebraska. 8,251 Oregon... 252 Coiorado Territory 1,155 Utah Territory... 3 Montana Territory 8S Idaho Territory. 65 96,327 Louisiana,.... 8,991 11,322,588 765,283 $3,551,004,655 issiaslpp! @, South Garolina’ (2) ‘banks, not having reported, are nit included in above, A statement of the total amount and rate of taxa- tion—United States and State—of the national bank- ing aespelations for the year endiug December 31, 1807, 18 as follows: —’ capital, $422,804,666; taxcs pad to the United States, 5 tax id to REPORT OF COMMISSIONER H. R. HULBURD. We have airealy published abstracts of the impor- tant report of Hon. H. R. Hulburd, Comptroller of the Currency, and proceed to add those portions not heretofore given as we find them in the full report of the document:— NATIONAL BANKS. Since the last annual report twelve national banks have been organized, of which five are new assoct tions. One was organized to take the place of an existing State bank and six were organized to take the place of national banks previously organized but now in hquidation and winding up, making the total number organized up to October, 1636. From this number should be deducted fifty-six, leaving the nuimber in active operation 1,629. ‘The banks to be excluded are the following:— Never Completed their Organization so ak to Com- mence Business.—First National Bank of Lansing, Mich., No, 232; First National Bank of Penn Yan, N. Y., No. 169; Second National Bank of Canton, Ohto, ~~ og Second National Bank of Ottumwa, Jowa, (0 ‘Superseded by Subsequent Organization with the Same Titles.—First National Bank of Norwich, Conn , original No. 65, present No. 458; First National Bauk of Utica, N. Y., original No. 120, present No. 1,595. In Voluntary Liquidation,—First National Bauk of Coiuinbia, Mo.; First National Bank of Carondelet, Mo.; National Union Bank of Rochester, N. Y.; National Bank of the Metropolis, Washington, First Nationa) Bank of Leonardsville, N. Y.; Farm ers’ National Bank of Rictumond, Va.; Farmers’ National Bank of ‘Waukesha, Wis.; City National Bank of Savannah, Ga.; National Bauk of Crawford Pa.; First National Bank of Fik- ind.; First National Bank of New Ulm, Minn.; Pittston National Bank, Pa.; Berkshire National Bank of Adams, Mass.; Fourth National Bank of indiana- Ind.; Kittaning National Bauk, Kittanning, Pa.; First National Bank of Providence, Pa, ; National State Bank of Jrubuque, lowa; Ohio National Bank of Cincinnati, Ohio. Since October 1, 1867~ First National Bank of Kingston, N. Y.; First National Bank of Bluffton, Ind.; First National Bank of Skaneateies, N. Y.: First National Bank of Jacksoo, Miss,; First National Bank of Downingtown, Pa.; National Exchange Bank of Mebmond, V: mg Bg National Bank of Appicton, W Nationa Bank of Whitestown, N. Y.; rat ional Kank of New Brunswick, J.; Fires National Bank of Titusville, National Bank of Cayalioga Falls, Ohio; Firs tlonal Bank of Cedasburg, Wis.; © tional Bank of Cincinnat, Ohio; uk of Watertown, Moines, low Worcester, N. ¥ oid National Y.; Second National Bank of First National Bank of South onal Mechanics’ and Farmers’ Bank of Albany, N. First National Bank of Piumer, Pa, Of the banks in liquidation the following are wind- Ing up for the purpose of consolidating with otter banks:—Pittston National Bank, Pittston, Pa., with the First Nationat Bank of Pittstor Herkshire Na- tional Bank of Adams, Mass, with the First Nacional Bank of Berkshire; Fourth National Bank of Iodlan- apolis, Ind., with the Ontizen Natioual Kk of Indianapolis; Kittanning National Bank, Kittanning, Pa., with the First National Bank of Kitlanning; First National Bank of Provide Pa., with the Se- cond National Bank of Scranton, attoval Slate Bank of Daouque, Iowa, wiih th st Nationa! Bank of Dubuque; Obie yal Kank of Cincinnati, iti tae Merchan ational Bank of Cincin- | National Bank nal Bank change of Richmon tional Bank of ithe Watertown, N. Y., Watertown, ‘The following banks in liquidation are by new organizations, whiek are to take the lation. a) rs National Batok of Hone New Brunswick, Princeton National Bank, eaded Princeton, N. J. 1 National Bunk of Des Moines, lowa, sueceeded by the Paciiic Navonal Bank of Counc Binds, lowa; First Nations: Bank of Pa., succeeded by the First National Bank of Sharon, Pa. The foliowing national ks Nave faiied to redeem their cireuiating notes an mm have beeu ap- ge for them:—First Natlonal Rank of Attica, N. Y., Leonidas Doty receiver; eae Nationa) Bank ‘of Franklin, Pa, Harvey Hen Fee ceiver; Merchants’ National Bank of Washington, bp. ©, James ©. has a receiver; First National | Rank of Medina, N. Y., Edwin P, Healey receiver; | Tennessee National Bank of Memphis, Teun, Wii. | Ham A. Hill receiver; First National Bank of New. | ton, Newtonville, Mass., D. Wayland Jones receiver; Firat National Bank of Selma, Ala., Gorne!lus Cadi, Jt., receiver; First National Bank of Sew Or 4, 1a., Charles Case receiver; National Unadilla Uauk, Unadilla, N. Y., Lewis Kingsley receiver; Farmers’ and Citizens’ National Bank of Brookiyu, N.Y erick A. Platt receiver; Croton Nati City of New York, ©. P. Bailey Haak of Vicksburg, Miss., Rdwin F, Brown ré First National Bank of Keokuk, lowa, Hi. W. » Feceiver; First National Bank of Betlel, Conn, b.% Tweedy reveiver, ‘The affair of the t Naioual ', $9,525,607; e8 pal ‘and assessed by State authorities, $8,813,126, making ‘ total paid to both United States and States 8, Th, ‘ho foliowing statement shows the amounts and kinds of United States bonds held by the Treasurer of the United States to secure the redemption of the circulating notes of national banks on the 30th day of September, 1868:— Description of Securities, Coupon Ac! Registered bonds—Act of Marc! Registered bonds—Act of Marc! 8,603,600 ‘Marci 3, 1805, first weries... eesiadetesnsascsaes” MOM IOD Registered bonds—Act of March 3, 1966, SECONA HELIER. «2... 60s ee ceeseeseeseeees 10,714,100 Registered bonds—Act of March 3, 1865, third BCTICR.........ceecesesseseecessese, 2,287,650 Rexistered honds—Act of March 3, 1465, FOUTED WETMEK...... 2s see ceeeeeeeeerereee 185,000 Blotal............, te eeeeeeeee + $342,019,960 REPORTS. ‘The National Currency act requires every associa- tion to make a report, exhibiting in detail its re- suurces and liabilities on the first Monday of Janu- ary, April, July and October of each year. In addi- tion to this, every assoctation Is reqifired on the first Tuesd: each month to make a statement, exhibit- erage amount of loans and discounts, ind other lawful money, deposits and circula- and banks not located in tae cities in section 31 of the are reqained also to return the amount doe them avallable for the redemption of bs Ke nm a 4 puiaiy je quarterly coming, as they do, upon a certein specitied day, known in advance, and for which the amplest preparation may be made, can hardly be expected to ni the actual working condition of the banks. ‘They are, of course, careful to exhibit the fli amount of reserve ras, and otherwise a full compliance with all the important provisions of the law. But it is in the large cities, especially in New York, that this plan proves most ovectionable. Geld and stock speculators, knowing that at a certain time the banks will make ita point to have & full supply of Jawful moncy tu their vaults, get up combinations for the purpose of producing @ scarcity of legal tender notes and a stringent money tarket #0 as to depress the market for goverument, State, railroad and other securities. National banks, held Ormly to the requirements of the law, ave seriously embarrassed by such trickery. Their necessities cotapel them to have the lawful money at any hazard, Besides the damage resulting from an unnecessary and forced depression of public rities, reguiar commercial transactions are im- suspended, or forced to be carried on at rates, owing to the artificial stringeacy thus produced. It is becoming more manifeat as one quarter succecds another tat the evil is becoming more and more intolerable, Honest industry, regular trade and legitimate business of every Kind, which wend upon the banks fur their usual factiities, are subjected to great inconvenience, hardship aud lose Uuvongh the abuses thas practised. ¥ things calls for @ prompt and eMcient Ss may be found ta an amendment to four of the act authorizing the Comp- trolier of the Currency to call upon the banks for five detatied statements or reports daring cach year, fixing Upon some day that is past for tie date of the report. In this way tron of the banks may be ascertained nt t intervals, without previous preparation on their part; and the pe. riod when the prte will be called for being un- known to the pu le operators Will be pre~ yented from const inst the banks and the honest trade of the country. This subject is commeaded to the early attention of Congress The subje. ta of “banks of voluntary liqaidation,’* “® central redeomunt agency,’ “Uke periodical stringeney in w York city,” “specie payments"? “free bankir &c., discussed by the Comptroicr have aireavy appeared in our coluans, The Westen Vacenn Cast—Hor Deata Ware RANT NeVRe IssUeD.—The Harrisburg (Dec. 6) respondent of the Philadelphia Press says:—No fur- ther action has boen takew ia the case of Leswt Vaugiu. No death warrant hag yet been issued by tl ern will never & lieves, howev aud ho will ast of impridonny Governor, 80 tat no reprieve ts necessary. Gov- wry lias informed Hester Vaughu that he for » the sentence of the court. He bos he deserves some punishment, to comtnute maemo to a tere’ it, Though, of course, tue quosuon wt ¢ndvisement. He regards (ho heroine aa, injadiclors and ine suk coofession Of guilt. Jay prenead have pledyred thet ses of her Tetra Wy bugs Cooke and W selves to detray tu Jand should ee be par