The New York Herald Newspaper, December 7, 1869, Page 4

4 tory comlition, Several hospitals have been erected at points where at present they are not needed, while the great commercial cites, like New York, Phiadeiphia and Baltimore, have no hospital ac commodations for sick and disabled seamen, A careful examiation of these insittutions has been maae by Dr. Stewart, an agent of the Treasury De- partwent, and by Dr. Bulings, of the United States Army. Tue resuit of their exammations is that several fospitals have not been properly managed; that olhers should be closed, and that hospitals should be erecied at New York, Balumore and Philadelphia, Measures have aiready veen taken for the sale of the hospitals at several places where tuey are not neeled. The hospital at New Orleans is represented as unsuitabie from bad location and oer circumstances. ‘The War Depart- ment 14 in possession of suitable hospitals at New Orieans and New York, which, 1 am iptormed, are no louger needeu for the use of the army, I respect- fully recommend that they be transiérred to the ‘treasury Department. ive reveuue marine system 18 an important and expensive brauch of the customs revenue service. ‘There are 36 Vessels belonging to the department, of which 12 are sailing vessels and 24 are steamers. ‘They vary in size trom 40 to doy tons, Ove bun dred and seventy-three ollicers and 2,400 men are required to an these vessels, and their running ex- penses amount to about $549,000 a year. Five of these Vessels, sidewheel steamers of 45) (ous burden, are Jake sicamers ahd oul of Commission, they are rap - tdly dinumishing in value, wuile the care of them in- volves un annual expense of about $70,000, The Vesseis now in the service have been purchased and built at Various times, und, as far as | can ascertain, without speciai reference to the nature of the duty wo be periormed, aud certainly witiout any matured plan, From one-lali to Liree-fourtus of tue whoie umber are Dot adapied to tho business, Congress recently appropriated $500,000 for the construction of four addiioual vesseis, and proposals were issued and bids received uncer We authority thus conierred upon the Secreiary of ve treasury, but no contracts have yet been made. ‘An @xaminasion of tho suvject las forced the con- Vactlon Upon Me Lat It 18 INexpedient vo tour the expenditure uatil the dopartinent 1s a possession of more accurate sud compivie imiormation, I shalt therefore take the Opinion OL & Louru Of competent Oilicers upou the following poluits:—Fust, the size aud Character Oi vessels required by the nature of the service that they are (o periorm; secondly, whether they suould be coastrucied of iron or Wood, or of @ combinauon Oi these jnateriais. Wien the report of the commissioners sal lave been Te- eeived proposals will be issued ior the coaswuction of four vesseis as authorized. THE MINI AND KRANCH MINTS. In additton to tue parent uiint at Failadelphia six brauch mints have been estadiisued ab various times mm diferent parts of the country—one at San Fran- cisco, One ab New Orieaus, one at Charlotte, N. 0.5; one at Dahlonega, Gu.; one at Denver, Coi., aad one at Portiaud, Oregon. ‘Since tue counneacement of the war tue brancues at New Oricans aud Dahlonega and Charlotte Dave been Closed, An assay Office, 1v is believed, wall satisfy the necessities of the mining interests in Colorado; and for the present only & limited business wilt be Gone at the Vortland mint. Andeed, wii the consiruction ol railroads and we conseguenUy increasing facilities for communica- tion, 1 aim of opmion that the busmess of commg Will be cluefly ab one mins upon the Paciile aud at one mint upon the Atlantic coast, Under an act of Congress passed July 24, 1866, preparations are making for the sale of ue munts ai Clariotle and Dahionvga. 2 ‘The mining and coining of the precious metals is Tow sv large a national lverest tat it deserves more ALLENUON than It hus hithereo received. At present tuere is no bureau or Oxlcer in tue Treasury Depart- ment at Washington caarged spect with tae Mauagement of this great interest, "1 therefore recommend that provision be made lor the appoint: ment of a proper oflicer to be ©: sed Will this branch of tue public business, unuer tue diLection of the Secretary of the Treasury The cviuage of t amount by the fact Lal Hugiaud and Frauce the maint expenses are muc ian With os. {0 would no doubt have a tendency to prevent the export of the precious metais mm the form of buinoa if ihe mint Charges were to be reduced or aitogether abolished. CUSTOM HOUSE LEASE IN SAN FRANCISCO. An agreement was made on the 41h day of Feb- Tuary, 1969, between the Secretary of the ‘treasury on beliali of the Uulted States and certata parties in Calfornia, leastug a lot of iad in Sau Frausisco Kuown as the Custom tiouse biock lor the period of tweaty-live years, ‘his lease is subject to the con- dition chat it siall be void uf Congress on or before the Ist day of Jauuary, is7¥, shal take adverse action im refereace thereto. in view of tue duct that the lease is for a@ long period of time, and being of the opinion that the govern- ent should retain contro! of property that may be needea for public purposes, | tutmk it expedient for Congress to aanul the icase. THE NEW POST OFFICE BUILDINGS IN NEW YORK AND BOSTO Considerable progress a3 been made upon the foundations of iwe fost Uflce b ing In tue city of New York aud Of the Post Oiice aud tndependeut ‘Treasury building in the city of Boston. Tue super Vising Architect of the Treasury Department is of the opinion that the wails aud rdois of the buildlags Taay ve completed auring the next year al suui- cieut appropriations are turaisued Tue works lay- jug been underiaken, 1 am Of opinion (at it 1s econ. ouncal to make the necessary appropriauens Lor tueir speedy compieuon, OUR COMMERCIAL MAX During the month of December ne department con- ‘That report will ts oi the counuy sustained during and that eflicient measuies are neceseary if restoralion. LAKIES OF OFFICERS OF THE DEPARTMENT. obomit to call the aitention of Couzress to Will be prepared to subimit a report upos tue dition of our commercial marin show that the navigalion ter have not recovered from the loss the Ww: equacy of tue salaries paid to oilcers in ury Department se discre- tion anu whose acts bind ment or aifect directly its expenditures or revenues. Some oO. the salaries were iixed when the govern- ment was organized, others when new oficers were adved, aud but lew of them bave been increased re- cenuly. It is unquestionably true that persous hav- ing equal abuity and clothed with siuallar responsi- vluty receive much larger compensation from indi- viduals aad Corporations, and although many of the ollicers now in Uwe puvilc service are likely to con- tinue, irom the circumstance that tetr yocation nas Jed tuem aside from the ordinary chanueis of busi- hess, yet aS @N act of justice tO tei and mM the luterest of the government I earnestiy recommend an iucrease of ther pay. Speaking generaily, this increase of pay should be extend to revenue oilicers in the customs servi such as collectors, surveyors, naval iil 4 and especially to appraisers and examiners m the appraiser's department, shouid the recom- mendation to repeal tue laws granting suares of peauities, ues and lorfet.ares to pu officers be adopted, it will be necessary to increase the salaries of collectors, naval oficers, and surveyors at all the principal ports ef the country. It 18 @ plain trun twat the government has no right to expect tie services of such com- peient meu as appraisers and examiners at the present inadequate salaries. In the larger cities ey are insuiiecient for the support of & family, and such circumstances the government 18 not onaibility When It places its officers in such a position that they are compeiled to cioose bet n dishonesty on the one hand and penury ot The salaries of the Aseistant Trea- d tite principal officers showid also be i- e. ubsiantially the same reasons. It has been found Lmpossiviedor the last few years to reiain the services of the most eilctent clerks ia the ‘Treasury Departament exeepu by addiitons to thelr lawful aries through a appropriation placed ia the hands of the etary Tor that purpose, The discrivution of this appropria"ion 1s an unpleasant duty for wie Secretary and canuot be performed without producing Jealousies aud aiscontents among the oflicers of we department. Speaking generally it may be sald that the heads of bureaus, chiet clerks and clerks in charge of divisions are luadequately compensated for the services they perform, ‘he routine busimess of the department can Le performed in a satisfactory manner by clerks receiving tue compensaiion now provided by law, but men on whose discretion aud Judgment the government reites for the proper tran- faction of the business of the country, and wiose labors are not limited to the ordinary hours of duty, Suould be made to feel that they are properly coun- Pensated. ADDITION AL OFFICERS 0} com There are two change Treasury Department y The first chauge to whic Chief Comptroller of the Tre thorized to contro! the sys of acconnting by tue several auditors and comptroller, and to whoin all Oppeals shall be made upon questions ariaing in the accounting 93 ces Of the Tre: + The creation of this oftice, clothes Wish the powers indicated, will give uniformity to the pccounting system, and I trust it will be in the poweF Of the onicer appoimed to simplify the system and materially re(yce As expenses of the department in this partigNer. Tho second change to which | call atventlon fs, in my opinion, even more inporant At are eight divisions in tye Secretary's 0: duties are connected exclusively With cng revenue system, There ia nO Dergga e3 ‘ ept the of the Treasyyy whe '- Uy aw autuorized THE DEPARTMENT Rg- NDED. 1 the organtzation of the 1 consider linportant. the creation of a airy, Who shall be an- finally or * ; oritiy i Ra ‘ a any way authoritively ypou Se a Ry Qaunistation et the ner arisin vu revenue laws, Abt the present tune the re- Venue frou Customs 18 as large as Lhe revenue Irom the excise system. ‘The number of men employed and the field of 11s operations are nearly as great. 1 1s impossible for the Secretary of the Treasury to give the various questions that arise in tie adml- nistration of the system that attention which is essential to the service. The duties of superintending tne coilection of customs re- Yenue are so varied, delicate and important a8 to Justily and require the exclusive attention of the Thost competent person whose service can be obtained. The experience of the present year in the administration of the internal revenue system and ton of the excise tax justifies the opinion e establishment of the ofice of Commissioner of Customs Revenue, corresponding in powers and posttion to that of Commissioner of Tuternal Reve- hue; and the appointment of a competent commts- sioner Would render tue execution of the customs revenue laws muck more efficient and harmonious, while the revenue would probably be increased to the amount of many millions of doslars annually; nor 4g it probable tuat (he expeuses would be materially greater. “ DECREASE OF THE PUBLIC DEBT, Tacluding interest earned aud not pail and de- duct ry ee on hand, the debt of the United States on the first of March last was $2,526,409,200, aud was subject to the same conditions. Lt was $2,453,069,736 op the first of the preseut month, suowlag a decrease NEW YORK HERALD, TUESDAY, DECEMBER 7, 1869.—TRIPLE SHMKT. é $71,903,524 Tnis apparent decrease of the public debt is lesa than the actual decrease. Consiaerable sums have oeen on account of warand other old claims not previously ascertained, and therefore not included in any debt statement. The account of March - from the necessity of the case, in- cluded only accrued. and not then payable; but as a matter of fact there were outstanding and overdue interest coupons, and these, several millions, have since been paid out of the ordinary revenue. Pre- vious to March 1 no tntereat account had ever been kept with tho several loans, Such measures as were tound practicable have since been taken to ascertain: the exact condition of these amounts. The bonds issued by the United States in ald of ratlways, amounting to $62,625,820, being 1m the nature of a joan, are not included in the foregoing statement, THE SALES OF GOLD AND PURCHASE OF BONDS. During the fiscal year ending June 30, 1869, there was an xcess of receipts over expenditures, includ. lug the Mterest on the public debt, of $49,453,149; of Luis excess $12,902,370, ag nearly as can now be ascertained, arose previous to March J, and the re- lander, $36,460,779, between Chat time and the Ist jay of July. ‘This excess was applied from time to tune to the purchase of five Eweniy mands, and the excess of receipts sluce July 1 bas been used in tho same manner, ‘The purchases amounted in the ag- gregate, on the 30th day of November, to $75,476,800, As # large part of the excess of receipts was reailzed 1a coin, saies of gold have been made from time to time, ahd the proceeds applied to the purchase of bonds, With the exception of the sale of moderate amounts of coin in Chicago, New Orleans, St. Louis and Baltimore for the payment of duties, the sale of gold and the purchases of bonds have been made uniformly through the agency of the United States ‘Treasurer in New York, and without any expense to the government except the comparatively small amount paid for advertising the proposals. Tue average Roe on gold sold since March 1 has boen thirty-two and eight-tenths ee cent., and the average premium paid for bonds has been 169 8-100 per eceat. Upon this basis of the sales of gold and the purchase of bonds, the average price paid for bonds in cotn has been eighty-eignt and fifty-five one-nundredths per cent he act of February 26, 1962, provided that the coin re- esived for duties upon imported goods should be anuually set apartasa sinking fund tothe extent of one per cent of the entire debt of the United States. In conformity with this requirement I have purchased bonds to the amount of $20,044,800, and Gesignated them as belonging to the sinking fund. These purchases are @ substantial compliance with the statute. From the 4th of March last I have not felt myself authorized or required to make any pro- vision for the time that elapsed after the p: or the act, and previous to the commencement Of the aduunistration, With the excess of means at my command I have purchased bonds in addition to those purchased for the sinking fund tothe amount of $55,432,000. These ave held as @ special fund, subject to the action of Congress, and I respecifully recommend that they be added to the sinking fund, and that any further purchases that may be made be so added until the gross amount shall consitute @ lund equal to that which would have been created if there been no delay in the execution of the law. THE CAUSE OF DEPRECIATION OF THE CURRENCY. The depreciation of currency is due to two causes:—First, an excessive issue, and secondly, to the want of faith in the government, and the extent of the influence ‘of the iirst named cause cannot be ascertained until the second 1s removed substantially. Whenever our credit snall be so much mmproved at home and abroad that holders of our bonds are disposed to retain them, even when the pubic mind is excited upon financial subjects, we shall be able to judge nore accurately the extent of the overissue of paper mo) It is also true that the quantity oi cur- rency necessary for the transaction of the busl- ness of the country cannot now be fixed accu- rately. Sinco the close oi the war the wants of the States of the South have icreased, and conse- quently a large amount of currency has been with- drawn from other secuions to supply the demand tnere created, The amount necessary for the pur- poses of the South will steadily tcrease for the next two years. The construction of the Pacific Ratiroad ts likely toresult in the substitution of paper for coin by the peopie on the Pacific coast. Itis probable that the demand for paper for taat purpose wiil not be less than $30,000,000. AS a Consequence a very large quantity of com will be withdrawn from circulatio! and Luus, practically, the coin Wili be increase upon the Atiantic coast, and the paper in circuiation lui the States, east of tue Kocky Mountains, will be moterially reduced. These changes wil tend to dimiuisa the duference between paper and coin. THE QUESTION OF RESUAPTION OF SPECIB PAY- NBNTS. The abitity of the country to resume specie pay- ments will not be due to any special legislation upon that subject, but to the condition of its mdustries aud to its financia! relations to other countries. These, of course, witl be more or less dependent upon the general policy of the government. The War exhausted the country of ita material weaith aud the States of the South were literally impover- ised. A necessary condition for the resumption of specie paymeuts was the development of the indus- try of the nation, both South and North and the conse- quent accumulation of movable products of Industry to such an extent that our exports of those products i be equai substantially to our imports, So ig a3 It 1s necessary to pay for merchandise im- ported py the trausfer of government bonds or other evidences of indebtedness to other countries, so long it will be impracticable to resume and main- tain specie payments. When the products of indus- try exported shali be equa! substantially to the pro- Gucts of other countries imported there wiil be no demand for specie for export except what may arise from the circumstances that our bonds heid abroad are sent home, sold in our markets and tne proceeds exported in cow. When the credit of the country shall be fully established in Europe, and there shall be no douvt einer of our ability or disposition to meetall our obligation bonds, heretofore and now w & large extent held by merchants and bankers, will be transierred to capitalists for permanent tnvest- ment—when this change sail have taken place the probability of our securities being sent home under tue influence of political or financial disturbances in Engiaad will be very sligut, and when, as a concur- ring fact, our exports, exclusive of pubiic securl- ties, shall be equai to our imports, specie payments may be resumed without even a temporary embar- Tassment to tue business of the country. THE SHIPPING INTERESTS OF THE COUNTRY, One of the most efficient means of strengthening the country in its financial relations with other countries 18 the development of our commercial ma- rine, ‘The returns slow that a very large amouat of the foreign trade is in English hands. We are not oniy tuus dependent upon a@ rival country for the perlormance of the busizess which should be in the hands of our own peopie, but our ability to maintain Specle payments is materially diminished, If the re foreign trade of tue country, both of exports imports, were carried on in American ships, the earpings WoUul® Not be less than $75,000,000 a year. At present the ireigits of the foreign trade in American ships do not exceed $25,000,000, Were the wade exclusively in American hands a large part of this diference of $47,000,000 wouid be due to citizens of the United States, and payable tn other countries. This amount: would be tuus added to our abiusty to pay for goods kmported iroim those countries. If, (d® example, an American citizen purchase 1n New York a thousana barrels of flour for six thousand dollars, aad export it to Liv- erpool iu ao Awerican vessel and it is there soid for seven thousand doiars, a bill of exchange may be drawn aga@ust the proceeds and an involve of goods a ue Of seven tiousand dollars purchased ta ud entirely liquidated, aithougi ai the Custom House at New York there would be fo apparent bal- nee against the Country of One thonsaad dollars, ut ii, On the other hand, the thousand barrels of rare exported tn a British vessel the procceds of the dour realized tn New York and which can be spplied to tae payment of goods bougiy in hugiaud will be only six thousand dollars, and there wil remain an actual balance against the country of a thousand dollars. ‘this familar examp.c shows the importaace of reeuebieie our commerical supremacy upon the ocean; and I deem tt, tuere- fore, essential to our prosperity that the shipping inte of the country be fostered, nor only as a nursery for seainé, bi! also as an esseptia! paency in onabiing the goverument to institute And ihald- tain specie payments, it is an inierest also which in its Qevelopinent is as important Lo the States and people remote irom the seacoast as it is to the mari- Ume sections. Every additon to our factiities for the export of the products of the interior 1s 98 advan- tageous to the producers a3 to tue merchaats and shipbuildera of thé country. Wiile Ido not anticipate that it will be necessary to dey resumption autil our proper commercial position i regained, I am satisfied that the deveiop- ment of the pavigation and siipbuilding interest will improve the credit aud rapidly augment the Wealth of the country. o ATR RESUMPTION OF the suggestions that * juve made indicate my QRiplow ENS ie Wil bo’ be wise to resume speck \ts while #0 large a part of the mw : ebt of the country is represented by five-twenty ds and heid by Buropean merevants, banke: manufacturers, Quesilong that have | aad raised in regard to the nature of the obligation fssumed by the government ia the issue of these bonds have undoubtedly deterred many persons n purchasing them as ® permanent investwent, aod consequentiy they are largely held in this conn- try in Kurope for speculative purposes, by per- gous Who design to put them upon the market w: ever the advaice shall faraish a suMctent induce- ment, or whenever politica! or Goqueral distarvances inay create a demand for money for other purposes, It 18 probable that from $700,000,000 to $900,009, 000 of these bonds are now held in Burope, aad wa consideravie exient by persons who will dispose of taem under the influence to which I have referred, buch a panic as existed in Burepe in 1566 at the opening of the Austrian and Prussian war would be likely to induce the return of a suficient amount to this country for sale to embarrass business, and, 1n case of resumption, to cause the suspension of the banks, It 18, therefore, in my judgment, essential that the large part of the five-iwenty bonds be with- drawn aud that other bonds be substituted in their place, issued Upon terms and conditions which admit of no doubt. In fine, the practical question 18 not merely the resumption of specie payment a8 & measure by itseif—that 1s not dificult—but the problem {3 to resume under such circumstances that the position can be maintained, not only in times of tranquillity, but also in periods of excite- ment and peril. Our course, it seems to me, is jain, Kyery measure oi the government bearing t pon fhe subject should tend to apyreciate tho value of onr paper eurremcy. It is probable that some decrease in the Volume OT payer Will ultimately .b necessary, and I therefore respecttully diigyost thal tne Secretary of the Treasury be clothed with author- ivy to reduce the circulation of United States notes 1M a0 Amount not exceeding two millions of dollars ta any one month. Thus will the country be brought Seay ev besta med gen myn e not Bj will be easy, if not unay. le. FUNDING THB PUBLIO DEBT. On the ist of December, 1869, the princioal of the public debt of the United States, nos deducting bonds aud cash on hand, amounted $2,605, 285,739, OL this amount the sum $357,113,258 is represented by United States notes not bear- ing iierest, larger of this 1s needed for circulation, but the amount can be reduced from the ordinary revenue of the country if Congress shall consider it expedient to make provision for sucb reduction. The fractional currency in circuia- tion was $38,885,564 68, and there 1s no occasion for any legisiation 1n reference to this item o1 the public debt. There were ou certificates for gold deposited in the to the amount of $36,662,040. ‘These certiticates are redeemable on presentation. These three items amount in the ag- ae to $431,801, 763; and in making provision for ¢ public debt they are not necessary to be cousid- er Of the loan of January 1, 1561, the sum of $7,022,000 13 outstanding, and erate on the ist of January, 1871. Tue loan of Of $20, 009 18 payabie in 1873, ‘The bonds known as ten-lorty bond: amounting to $104,567,300, are not payable unil 1874. I'he six percent bonds, payabie in 1831, amount to $283,677,000. As the bonds known as ’s1’s and ten-lorties, amounting in the to $478,244,900, are not due and cannot previous to 1874. and 1831, it ls unnecessary to con- sider them in making provision for @ new loan, ‘he tive-twenty bonds, amounting in the aggregate to $1,692,671,100, are elther «due or will soon become due, and it 18 to this class of the publio debt, aud to this class alone, that attention should be directed. Of this amount the sum of $75,477,800 has been pur- chased since March last, and the bonds are now heid by the ernment, measure for funding the five-twenty bonds can be consummated the government will be able to purchase at least gt 000 more, ‘There will then remain on the rst of July next about Cant of the five. twenty bonds in the dal of public creditors. Ot the entire indebtedness of the United States only ‘the unimportaut sum of $27,000,000 will be due and payable previous to 1874, Inder these circumstances it does not seem to mo to be wise to authorize the funding of ‘tie whole amount of the five-twenty bonds, which, as is now @nticipated, will be outstanding on the 1st of J next, but that $250,000,000 at least should be sul- Iered to remain either for purchase or redemption peeves to 1874, Suould whe sum Of $250,000,0v0 be leit for tuat purpose tue entire public debt would ve 1D & Coadition to bo easily redeemed. Between 1874 and 1881 the ten-forty bunds could be pail and pro- vision also made for the redemption of the bouds which will become due in the year 1881, It may be ‘wise to reduce the proj loan of $1,000,00v,000, which would then leave for payment previous to 1381 the sum of about $670,000,000, or hardly more than $60,000,000 a year. Assuming that the proposed loan will be for an amount not oxceeding $1, 200,000,000, Irecommend that it be offered in three classes, of $400,000,000 each; the first class of $400,000,000 to be payable in fifteen years, aud to bo paid in twenty in the second Class of $400,000,000 to be payable in twenty years aad to be paid in twenty-five years, and the third class of $400,000,000 to be payable iD twenty-five years, and to be paidin thirty years. ‘The essential conditions ot the new loan appear to me to be these:—First, that the principal aud iuter- est siail be made payable in coin; second, that the ‘bonds known as five-twenty bonds shall be received in exchange for the uew bonds; third, that tue prin- cipal be payable In this country, and the inverest payable either in the United States or in Kurope, as the subscribers to tho loan may desire; fourth, that the rate of interest silall not exceed four and @ half per cent per annum; fiitn, that the subscribers in Europe shail receive their interests at London, Paris, Zeriin or Frankiort as they may elect; sixth, thatthe bonds, both prin- cipal aud interest, shall be free from ull taxes, deductions or abatements of any sort, unless ib shall be thought wise to subject citizens of the United States to such tax upou income trom the bonds as is imposed by the laws of the United States upon income derived from other money tvest- ments. fhere are two reasons, and each seems to me to be @ controlling reason, Why the vonds of the Umeted States should be exempt from State and local taxes. If not 80 exempt, the amount of taxes imposed by the local @uthorities Will be added to the iterest tue government will be required to pay, and thus the national government wiil be compeed to proviie for taxes imposed by tne local authorities; secondly, inasmuch as the ability to borrow may under some circumstances be essential to the preservauon of the movera rs tho power should not, even in times of peace and prosperity, be qualiiied py any concession tO the States of thé right to tax the means by which the national government is main- tained. The right to use its lawful powers, {ree of any condition, restriction or claim of another, is an essential condition of sovereignty, and the national governinent shouid never surrender or qualify its power in this particular. In offering tue new ioan citizens and subjects of other goveruments should reveiye the strongest as- surances that the interest and principal are to be paid in coin, according to the terms of the bonds issued, without any deduction or abatement what- soever, In order to avoid the necesalty of employing agents for the negotiation of the loan 1 respect fully recommend that @ lberat commission be allowed to subscribers, aud that those who first subsoribe shall be permitted to select the class of bonds in which their subscriptions respectively suall be made. 1 further recommend, in connection With the proposed joan, that the banks establisied ‘under the act to provide a national currency be re- quired to substitute the ponds that may be issued under the proposed loan act for those now deposited as security for the redemption of their bills. Shouia auy bank be unwilling to accept the new condition, provision should be madefor the surrender of its charter and authority given for the organization of new banks to supply the deficiency thus created. An essential condition to the success of the pro- posed new loan 1s the continuance of the present revenue system. A culef means by which the pre- sent holders of the five-twenty bonds cun be induced to surrender them and _ receive a bond upou longer time and ata lower rate of in- terest is the certainty furnished by the magnitude of the national revenue that chese bonds are soon to be redeemed, We must be prepared to offer them the alternative either of accepting the new bond at a lower rate of interest or payment of the principal of the existing bonds. When the five-twenty bonds shall have been funded to the amount of $1,600,000,000 or $1,200,000,000, the revenues can be reduced ma- terially, and yet sufficient sums be raised to meet the ordinary expenses of the government, to pay the interest on the public debt and also to pay t etapen to $50,000,000 of the principal annually. jhould our success in negotiating a loan be equal to my expectations, based upon tne fact that the ability and disposition of the people of the United States to pay the public debt are sufficient to justify me in assuming that the bonds of the United States will command the highest rates tn the markets of the world, we shall then be in @ condition to enter upon the work of reducing taxation at the com- mencement of the next session of Congress, On the s0th of June, 1868, the amouut of outstand- ing three per cont certidcates and compound interest noies convertible into three per cent certificates was $71,004,590; on the sot of June, 136%, the amount outstanding was $54,091,410, show- ing @ reduction of $16,613,480 in that form of imdebtedness. On the ist of December, 1869, the amount outstanding was stil further reauced to $49,716,150, showing @ total reduction in seventeen months of $21,883,740. ‘The three per cent certifl- cate aut Substitute to @ considerable extent for tho United States, being lately held by the banks as & portion of tiem reserves, aud tuus indirectly, though not to their full nomimai vaiue, they swell the volume of the currency. I recommead be @ pro- vision be made for the redemption of the threé per cent certilicates within @ reasonable time, and, as a compeusating measure for the reduction in the @uount of currency which wonid thus be caused, that authority be given to grant charters for banks in the States where the bauking capital 13 less than the suae to which they would be entitled vo an amount not exceeding $36,000,000 in the aggregate. Tie redempiion of the three per cent certiicates and the additions to the baking Caplial might be #0 arranged as not to prodace a seflous disturbance in the nnances or business of the country, while additional banking captial would be supplied to the sections now iu need of it, and this without any lucrease of the volume ot olrculauion, EVILS OF OUR BRESENT BANKING SYSTEM. There are two evils in the present banking system which require remedy by prompt and efiicient levis lation, ‘ihe fist 14 the practice on the part of banks of allowiag interest upon deposlis. the e of the practice 1s that moneys in the hands of indi- viduals which otherwise might be loaned for reguiar mercantiie end other business purposes are divided lato =6the ~—s custody of banks, upon the idea that Lf the security 1 not wow, phyimevt can > > ten, Yountty BARS ‘ang ss tors rewoie trom the ous waue HAVING Tecclved money on deposti for which they pay interest are anxlous to transfer such fands to other banks wad irom which they will receive an eqaal or larger amount of inter. est m return, They are stimulated al“o by the desire to piace their funds whore they can be at all Umes cominauded. Thus influenced, large sums are placed ou deposit with banks in the cites, especially in the city of New York, which ts the great ceutre of trade and tivance for the Atiantic coast, iu the or- divaty course of trade tho currency of the couuiry tends rapidly to the o'ties and it is unwise to stirau- late this londency by artificial means, But tae evil does not end with tue impoverishment of (ue country, AS the banks im the cities may be calied upon ai any Moment to respond to tne drafts of tneir depositors, tuey deciine to make loans representing such funds upon commercial paper, payable upon time, but in- sist Upon making call loans, as they are termed, with government bonds or otber obligations piedged a8 collateral security. Merchants generaily Will not borrow money in large sims payable upon demand. The consequence is that the moneys thus accumu- lated in the city banks are loaned to persons to on- gage In speculative pursuits, The extent of this evil ts seen In the fact that of the bank loans in the city of New York in October, 1863, $93,000,000 wero upon commercial paper and $68,000,000 upon «e- mand, with a pledge of collaterals, and in Uctober, 1809, ‘$49,000,000 Were upon commerctal paper and $59,000,000 upon demand, In the former year forty-one per cent and in the latter year tnirty-seven per cent of the loans made by the New York banks were upon demand. A further resuit is seen in the fact that pees borrowing money upon commercial paper for jegitimate commercial purposes pay from tiree to #1X per cent additional interest per annum, as com- pared with persoas who borrow money for specuia- tive purpose. 1 i worefore respectfully recommend that ¢ law panes, probibiting absolutely the paymént of ¢ it by banks upon deposits, and limiting also their loans upon collaterals to an amornt not ex- ceeding ten per cent of ther capiial 1 Aud satialiod, that the etice of certi! even Fe th ae 9 rawer 0! cl “ ought to be entirely nonitates, RECEIPTS AND EXPENDITURES. The Slloning Maceree exhibits the receipts and expenditures the fiscal year ending June 80, 1869:— From customs. . $370,043, 747 $58,474,061 Total, exclusive of loans. . Brpenditu Civil service.......+ Pensions and Indians. 86,519,644 War Department. 78,601,900 Navy Department 20,000,757 Interest on the publi 130,694, Premium on 7.30 United SI y notes. 800,000 Total, exclusive of loans. + $821,490, 697 Receipts in excess of expenditures. $49,453,149 ‘the following statement exnibits the receipts and expenditures for the quarter ending September 30, Total, exclusive of loans........ $108, 831,622 jitures, After ting the unt af Be- payments by Disbursing Oflcers and Othere, Civil service. . Indians and pei War Deparment: Navy Department. Interest on the publi Total, exclusive of loans........ Recetpts in excess of expenditures $28,351,107 The estimated receipts and expenditures for whe three remaining quarters of the tiscal year ending June 30, 1870, are as follows: Receipts. Expenduures, Qlvil service ........ 000,000 Pensions and Indians . 21,000,000 War Department.. 40,600,000 Navy Department. 14,000,000 Interest on the pubic dep! 93, 750,000 Estimated receipts in excess of expendl- UULOH -. se veeeseesveresesseeeersense sees 1 $10) 750,000 Estimated Receipts and’ Expenditures based Upon Existing Laws, for the Fiscal Year ending June 80, 1871, $185,000,000 175,000,000 5, 000 Customs ...... Internal revenue. Miscellaneous services. Expenditures. Civil, foreign and miscellaneous. Interior, Indians and pensions. War Department. . 60,000,000 Navy Department, 18,000,000 Invereat on the public deb 127,000,000 Total... sssecscesecees $291, 000,000 Estimated receipts in excess of expendi- cures... seeee'e + +$102,000,000 The foregoing estimates of receipts are made upon the assumption that the laws now tu force relating to customs and internal revenue will be so changed ag to materially affect the revenues, and the esti- tnates of the expenditures are based upon the expec: tution that 0 extraordinary appropriations will be made. GEV. 8. BOUTWELL, Secretary of the ‘freasury. CUBA. Volunteers for the Field—Brutal Treatment of Slaves Suspected of Conspiring to Revolt») < that you \oast. We lear @ great deal, Landing of Arms—Engngements in the Trinidad District—The Spaniards Defeated and Pursned. By the steamship De Soto, which arrived on Sun- day last from Havana, tne following reliable letter has been received in this city:— MACURIJES, Nov. 29, 1869. On the 1st of next month 400 volunteers from the First battalion of Matanzas will leave for the Al- dataa sugar ea.ates, Where they wil be quartered to guard the same, staif and headquarters at the “Santa Rosa,” which is a magnificent plantation. The rising of the negroes at Quemados (Carahatas), which Trills, the Governor of Sagua, pretends to have discovered, has taken place upon the selawang estates, viz.:—San Isidro, belonging to More Ajuria; Lugardita, to Vattellano; Santa Teresa, to Coppinger; Esperanza, to Afonso; San Francisco, to the Count O'Reilly; Margarita, to Francisco Armen- teras; Capriepo, to Bias Muro, and the Eco, to Stocker, which, together, contain about 1,700 ne- groes, All the hands, both free and slaves, upon the eight estates referred to have been horribly a ) and afterwards made to give tneir evidence ai the Santa Teresa. Three of the number were shot, one was flogged on three different occasions, receiving ioe ere lasyes; aud one of the bess ne- groes on the pluce,a Vigorous map, was whipped almost to death, and amid his sufferings, wiule repeatedly fainting and falling to the groun from sheer wi » Was made to delaro what he knew. Another, upon receiving the order to lie down and submit to be tied and receive punishment, fell senseless. Nevertheless he received 1,000 lashes, without giving the slightest sign of life. A creole n suspected to be, though not, implicated in the plot, received 1,200 lashes. The hands of the estates were collected together upon the Esperanza, and there, in the presence of 2,000 negroes, the ringleaders of thes conspiracy ere flogged 1n gangs 0 twenty-one at a time—two executioners being detailed for each victim. At the same p nine Were shot, and in the punishment ce ae no distinction was made between free and alave, : A cartload of the chastised freedmen arrived at Sagua la Grande, headquartera of the district, and were thrown into jail, lying with their faces down, because their wounds prevented them from assum- ing any other position. The head physician of the Charity Hospital calicd there to see them and de- clared that it was useless to treat their wound: because he was sure that tiey would all die, an added that if they were carried to the hospital it would oaly be to soil the wards. These gsuiferers were nino in number, and near death; but it 1s well understood that if any of them miraculously survive it will be to be shot. A white man, accused of incendiary intention: ‘Was condemued to; be shot to death by a drumhe: court martial, witch, in this couutry, is merely wie dictum of any commander. The pian of the negrocs ig supposed to have been to rise on Onristmas eve, Kill the whites and join the insurgents, At Santiago de Cuba a landing of arms at Mayari is sul spoken of, and thé apets for the first time m: hieniton of Low Marcano, and say that Generals Jordaa and Joucep Marmol are marching y “] Gibara. Lt will be remembered that Loul Mar- hn. was reported by tho Spaniaris to have been assassinated by his own men, but the story was unt- versally disbelleved. A special despitch has boen received from Gene- ral Cavada, dated the 15ta of November, near Trial ad, We have reliabie ioformation from the Trinidad district that tie Spaniards were repulsed with heavy loas 11 @ formidable atcack made on the rebel pori- tion at Mecazus, and subsequently a heavy column of troops was routed at Aquada del Sanco, tn the immediate vicinity of the city of Trinidad, and pur- sued by a portion of the patriot forces up to the very suburbs of the city. These attacks took place on the Lith and 19th of November, The Spaniards Defented Near Trintdad—The Cubaus Follow the Retreating Soldiers Up to the Suburbs of the City. An official despatch has been received in this fity from General Cavada, the Cuban general %mmand- ing the Trinidad district, dated tne 19m of OUST. ber near Trinidgd, af wiv-™ ® ein oF Nove mh ~« ote followlog is the sub- BaDCe,— The Spanizh troops have been repulsed with heavy loss ina formidable attack made on the rebel post- tons at Macagua, Subseqnently a heavy column of troops was routed at Aguada del Santo, a small place in the vicinity of the clty of Trimidad. The Spaniards were pursued by a portion of the patriot forces up to the very suburbs of the city. These en- gagements look place on the 1ith and 18th of No- vember. “THE DRAWBACK FRAUDS. Surrender of Samuel T. Blatchford—Ue is Kelensed Under Ten Thonsand Dollars Ball, Out of sight out of mind, The surrender of Samuel T. Blatchford, charged witt? compiicity in the Custom House frauds, created some interest, inasmuch as it was generally supposed that the alleged delinquont had made an extended trip, the precise date of bis return not being a matter of cer- tainty. The excitement caused by the recent de- velopments concerning the defalcations was begin- ning to fag somewhat, but the appearance of Mr. Blatchford upon the scene has again roused tl curiosity of the Bey it appears that Colonel Whitley proceeded to Montreal during last week, and having discovered the hotel at which Mr. Blatch- ford wae ing, informed him on Saturday last that he had instructions to institute proceedings for his extradition to the United States, After some Alscussion, Whitley, ¢xpressing a hope that he would render that course unnecessary by accompanyin hun to this city, Mr. Blatoltiord agrepably woceded to hiw request t me to New York, ihe ete on o'clock. dare morning accompanied by Mr. Sedgwick, his wh le ana Gofouel Whitey, ohare Go alssloner "9 office for Tpowe Of " self end in order that obarge wight be formally referred thas pr Against him, The specie charge 1s the eo f imaginary clanns, correotness 0! and the cations are gaid to amount to over $1,000,000, Al- though somewhat nervous Mr. Blatchford Was vary easy in bis manner, and after some conversauon ho was held under bali in tho sum of $10,000 to await examination on Saturday next. DINNER OF THE ST. NICHOLAS SOCIETY. The Exclusive Kuickerbockers “Ayuciente Gloryc.? Asnow storm inaugurated the féstival of St. Nicho- las, or Santa Claus, last night, The sons of that Knickerbocker saint assembled in reindeer skins, snow shoes and holiday “xing’, at tho St. James’ Hotel, at six o'clock, Benjamin H. Field had been elected President, and duly inaugurated with tho cocked hat of Petrus Stuyvesant and the big badge. After a short delay, marshalled by the gallant secre- tary of tne stewards, Colonel John Fowler, Jr.—and also on the staf! of Gencral Shaler—the President headed the Santa Claus procession and pro- ceeded to the cosey dining hall of the hotel. Tao invariable Knickerbocker attendants stood at the door, in orango. coats, scarlet vests, knee breeches gnd silver buckled shoes. But the sons of Erin did duty with the platters. Grace was asked by the Rey. Dr. Francis Vinton, when the company fell to and attacked the viands of 1869 with the spirit and hunger of 1610, when Hendnk Hud-: gon firat “came to town.” The tables were deco- rated witu Knickerbooker ornaments, including the usual rooster and weathercock. The HERALD reporter being obliged to roost up the chimney, Santa Claus style—because the sons of old St, Nick ‘opject to ‘‘chicls takin’ notes’’—is is impossible to give very particular descriptions. The dining hall was uniaucly and appropriately decorated and the bill of fare and toast list were printed on orange paper, with a vignette of the old Knickerbocker. ‘Tne cloth having been removed the President an- nounced the toasts a3 follows:— “Santa Claus. The Saint whose coming, like that of Christmas, is always hailed with joy.” Music, caer Van Donck.” Responded to by President ‘ield. “Tho President of the United States.” Music, “Tne President's March.” “The Governor of tne State of New York.” Music, “The Governor's Maich.” ‘The President read o letter from Governor Hoffman. “The Oity of New York. Dutch in Infancy; Eng- dish in Youth; American in Manhood—the three great elements of her prosperity.’’ Music, “Home, Sweet Home.” Responded to by Mayor Hall as fo\iows:— I believe it is in accordance with old Knicker- bocker custom that the Mayor should be in sucha house as this ‘and on such an occasion. The first City Hall was changed from a tavern, and tt is chronicled in “Valentiae’s Municipal History of Town Magistrates,” that “they Cee ie the title of ‘my lord? and an elevated place on all ceremonious occasions. On Sundays they occupied # separate pee in church, their state cushions being carried yy the beliringer from the City Hail and placed in the pew.” The title of ‘my lord’’ is bappily obsolete ever siuce the days when Lord Howe he camo in, And lord! how he went out! But the e.evated places on the ceremonious occa- sions survive; I am, however, sorry there is no separate piace provided on Sundays for town magis- trates, aud that the Cliy Hall beliringer does not carry State cushions ¢o be planed in pews. If such were the cusiom, asin old St, Nicholas times, accord. ing to this history, the towa magistrates would go to the church oftener than oe do. ‘This is not only the St. Nicholas night, but (para- phrasing the Santa Claus rhyme)— "Tis the eve of election whe: through the town, Not # candidate's up but he's asked to come down. Lam in that curious position to-nignt when I don’t koow whetner lam up as acendidate or wheter L aim to come down. Some pouticians say I am up as @ candidate; others say 1 amnot. But one thing is certain, I don’t intend to come down, at least not from this pleasant dinner perch, until I sing you some ality, according to custom, about the city of New now a- jaya, about the good old timesof the city.. I pro- pose to go back for a moment. Only a hun- dred and sixty-eight years, when, as vera- cious city chroniclers’ tell us, -a severe con- test for supremacy in the city government took place. I believe such kinds of contests seldom take place now. At that time the Mayor and Recorder were in the Common Council; and there were six Aldermen and six Assistants, in accord. ance with the Kuickervocker mot of six of one and half a dozen of the other. Parties were then divided into Leislerian and anti-Leisierian. Who does not re- member good but unfortunate Martyn Jacob Leisier, beara Sake et Printing House square? ‘The anu-Leisprians elected @ Mayor by the -name of Noel (which I believe is French for Christman). He ‘was a Christmas preseutto hia party, The Recorder was anti-Lieslerian and held over. He was Mr, Abraham Gouverneur. Then the Recorder was ® Gouverneur. Since that era another Recorder (Hofman), one of our feliow members, nas been made @ governor. The historians go on to say that as the aldermen who were in made the revurus of the election for the ensuing year, every alderman returned the candidate of his own party as elected. Those were the good old umes ofa hundred and Sixty-eight years ago, remember. Of course no such things are done now. ‘fhree of the aldermen at that time returned themselves elected. One of them wa, Mr. De Peyster; one was a Mr. Provost; one was Mr. Roosevelt; one was a Mr. Onclebeg (who was of course not a pawnbroker), and three others rejoiced in the appropriate names of Brazier, Roome and Jelleson. The Leisbrians who were going to contest got themselves sworn in before the outgoing Mayor. The ani-Leisbrians waited for their own Mayor to come in. On city inauguration day the new Mayor was sworn in, and the crowd of ins, outs, and contestants went to Trinity church where an ‘appropriate sermon’? was preached by the Rey. Mr, Vesey, The adjective « ee, is used by the chronicler. What kind of an appro- priate sermon could be preacued on that occasion it is bard to tell, unless it was from the text— whieh 1s always a good one for municipal rulers—“‘Prove all things; hold fast to that which Is good.” The Kev. Mr. Vesey’s fame survives to our day, not only in the records of the church, but in the street by the side of St. Paul’s, which was named afver him. After the sermon they all went to the City Hall, and a contest ensued between the two sides, und even from the church door to the Uity Hall there had been great disorder. Ali in the good old times 168 years At the Hall were writs of mandamus issued by the judges of the Supreme Court awaiting the Mayor. ‘The judges were, o/ course, very heatedly abused for doing what they conscientiously did. 1 believe such things are not done now. The writs of Mandamus to the Mayor commanded him not to sweat m some of the aldermen. J am not going to detain you with the merits and demertts of the case. It 18 suflictent to say thero Was a great contest, and there was a kind of riot. The curonicler says that a general couflict impended, So the Mayor dissolved the meeting. Then the chroniclérs go ou to say that all "ng Leisvrlan party reiused to be sora in yy the Mayor; so he reftised to sit with them in tire Common Couicil. As there cowid not be a legal scrutiny of the disputed elections, except by order of the Common Connell, tt was apparent that the city would be without a government unless some other measures were taken. So pretty mach a8 now is the fasiion for the boards of canvassers Lo be appointed, two from eage side, four scratiuizers were named, The Letsbrian tmspectors declined to act, Two anti Letsbrians did act, and it appears from the scrutmy that they found in two wards one-eighth of the yotes to he Iil- legal; in another they found one-fifth to be iilogal. This was in the good old times, ong hundred and sixty-eight years ago. Similar cliarges have been made from that day to this, and will continue to be made, I suppose, till time aud elections shall be no more, Thea there was other row in the Co.amon Council, Some of the persons scrutinized out declined to be left out, and a couple of months passed before the Supreme Court could cut the gor. dian Knot by diplomatically dividing the Aldermen between the two parties, and ag the Mayor and Re- corder represented both sides, there was @ general singing ali round of “Blest ts tho tle that binds.’’ ts in the good oid times when St. Nicholas ovof. shadowed the city such things could exist without pyotine watt random NOW thMt AS ie over | diakoited Ya" aoins’ Sates, WF Sh PAL uanbrinus and many im-Puritad influences, .. . Wonderful that there should be poiltical disturbances and contamely in 1869 Walch should excite e-pectai wunder. But inspite of demorita or suortcomings Ol magistrates, Whether ia 1702 or 1869, tie city of Now York has grown in commerce and prosperity, Whether it would have cqually growa in good Morais Or not had St, Nicholas siows controlied our municipal destinies I leave it jor the modest mea- bers who are present to-night to say. ie remaining toasts were as follows:— The Umon"—The surest bond for the peace, pros- erity, power and liberty of the Ameiivan peop es, usic— The Star Spangled Banner.” Respouded .o by Mr. Wiliam H. Bogert. “The Army and Navy—frue to their oaths and true to their fag, they will be in the future, as the: have ever been in the past, the nucleus around wiic! in the hour of danger rally alike the chivalry aad pa- triotism of the land.”’ Music—itaily Round we Flag.’ Responded to by General Gilmore, “Holland—The only country where everybod knows which way the wind blows.” Music—«Wil- heimus Van Nassauwen.” Responded to by Kev. Dr Schenck, of Brooklyn. “Our Sister Societies—Rivals only in good works; God bless them ail.” Music We're a band of Brothers,” Responded to by Messrs, Bessinger, of the German; Stuart, of St. Palrick’s, and Choate, of the New England Society. ‘The Pope recently visited the tobacco manufactory and was presented by the manager with several thousands of the best cigars, The Holy Father ts a great smoker, invariably taking @ cigar atior every meal, Tho Catholic world, though it includes nearly all the smoking uations, never considers that cigars can be wales, ai the Vatican, and consequently these requisites make a poor show in the stream of preaeats which has pourod in upon the Popo. The oly Father walked the whole way tg the manatao- tory, which ‘8 in the ‘Trasteveré, aud was in excel- ir Being Wid that a groat part of pA be iris of the Trastevere, Wuo are éd for their good looks than d char- pie '§ % exclaimed, “Conduct mea. then, ba these OEY ats of Goud io Thelr and St, te ta not, HOME FOR THE ELECTION. The Convict Wesley Allen, of That [lk, Ea cnpes from Auburn Prison—How the Escape Was Etfected—Tho Prince of “Repeaters” Home Agniu. Envy, malice and all uncharitableness largely enter into every contested election held on the Island of Mauhattan, and crimination aud re crimination are indulged tn to a surprising extent; hence tt is that the preposterous story 13 afloat among the people that very many of the distinguished gentlemen, who at sundown to-day will celebrate; their victory over law and order in friendly gin mills, and lay their plans for picking and stealing in the ofices to which they are “elected,” can neither read nor write. But not even the most bitter antagonists of the ‘choice of the peo- ple’ can gay, of certain candidates at least, thas they are totally ignorant ofgeography. Are they not intimately acquainted with the village of Sing Sing and tts hospitable stone palace, and is not Auburn familiar ground? = * ‘To tho tatter gentleman this column will be inte- resting reading in the small hours of the day when tired navuro calls aloud for rest and the business of repeating is temporarily suspended. Interesting for two reasons:—First, because the scene of the adven- tures of the beloved Eighth warder herein described will recall touching memories of the past,and because the fact of tlie sald Eighth warder being present in the flesh and clothed in his right mind and 4 suit of broadoloth in their midss may seriously affect the fortunes of the day. To those aiao who do not care or dare to interfere im politics and who pay ther taxes, moan and do nothing; who, when the taxes are doubied, tripled and quadrupied, hint at possible vigilance committees, pay up, moan again, and yet do nothing; wio permit thieves, loafers and scoundrets of every stripe todo their voting, and often to rale over them, the information here given will be inter- esting. Many will be more watchful when they go out at night, and will see to their doorsand windows before they retire to reat. The police, too, willleara a wrinkle. WESLEY REDIVIVUS. The important fact, then, for which the foregoing remarks will have prepared the reader ts just this:— ‘That Wesley Allen—of the cheerful family of the Allens of the Eighth ward—who, for having indis- creetly opened business in a partof the State be- yond the jurisdiciion of Jefferson Market, was tried for burglary on the 16th day of Novem- ber, 1669, in Brooklyn, and sentenced by Judge ‘Troy to four years and seven m. that imprisonment in the Penitentiary at Auburn, N. took an arentonne netbey of is oon anions on last Wednesday evening, and, in - pany of anumber of friends, arrivedin new York in due time and in the best of hea!th and spirits. He was seen on the streets on Saturday. His learned brotucr, the Hon, Theo, Alten, ph tag tor of the’ St, Bernard House, candidate for alder- man on the Democratic Union ticket, may, there- fore, induige in the pleasures of hope all ‘day; for when the polls close he will be a Uity Father—or Wesley Allen will know the reagon why. ‘Mr. Weslcy Allen does not go by bis own name always, but, like many other distinguished people when abroad, travels incognito, He was introduced to Judge Troy as Charles Langley, and that name adorned the books of the Auburn establishment, “— WANT TO GO HOME”? ‘When he had learned all that was to be learned in Auburn Penitenuary and familiarized himself with every object of interest there, ne remarked one day to James Mitchell, &@ boon companion and fellow risoner:— Mi “Jim, vs near election time in New York, and Theo. is running for Alderman, I think I'll go, Be- sides, won the boys T would not be in the country for more than a year. Jim was not astonished, but delivered himself of a deep grunt of satistaciion and winked with pro- found meaning. Jim knew his man and Wesle: knew him. Afew words of explanation followed, afd then the vigilant keopers Observed them quar- relling and separated them, CONSOLING VISITORS. Two days after this incident a number of visitors arrived and were shown through the prisop. Some of them noticed the tall, slender, one-eyed, but teel looking Mr. Wesley Allen, and spoke to him gently of & place where oakum picking was un- kKuown and where people wore the same stripes on each leg of their breeches, when they thought pro- per to wear them at all, and hinted at the necessit) of casting aside the vanities of this wicked world. Others took the grim and morose Mitchel! m hand and poured consolation into his capactous eur. At least the visitors seemed to be 80 engaged. The wardans looked on and smniied at the simjlicity of the visitors. But the visitors were not so very inno- cent; for several respectable~burghers of tho town overheard them some time after, when they were refreshing the inward visitor in a lager beer saloon on Main street, deciare, each and all of them, that “By Wesley would be out in time for the elec- tion?” ‘The burghers knew not Wesicy and the re- mark passed unnoticed, THE PREPARATION FOR ESCAPE. The clock in the steeple of Auburn church was striking the hour of twelve on Wednesday night, When @ carriage containing four men, and driven by @ person who was of the party, rattled past the sleepy watchman, on in Main street, and turned off into @ by road not far from the Penitentiary. At the same moment Wesley Allen crept from his bed. and taking oat of hia pocket a small piece of phosphorus, rubbed it on his Band. The light thus produced enabted him to ick from several keys, which he pulled from under his blanket, one smaller than the rest. Having ar- Tauged the others in his belt, he then, with the smalt Key in nis hand, crept, stealthily as & cat advancing on & mouse, toward the door. A single peep through the bars assured him that ali was safe. ‘ihe warder on duty had his back toward him and was readiig. In a minute more the convict returned to the bed and silently, but swiftly, formed it into the shape of a man lying on his side, and covered the “dummy” with the bianket. His cap he put in its usual place, and left bis boots conspicuously in view. So far so good. CRITICAL RRLATIONS. * Then Mr. Wesley drew a long, glistening knife from his jacket pocket, and, placing it in hts mouth, moved to the door of the cell. ‘The warder was still deep in his newspaper. For a moment the out- law considered the propriety of despatching the “constant reader’ of the journal, but fora moment only. Time was precious and everything depended up- on instant action. Dexterously he fingered the lock of the door, swiftly did he turnthe key. But silently not & sound disiurbed the silence of the corridor, Out went bis head fora final peep, and quickly did 1¢ @o in again. The one eye in Mr. W: ’a head de- tected another watchful eye lower down peeping out just as was peeping, A moment's reflection, however, convinced him that he was alarmed without cause, The other eye was one of the windows to the luminous mind of Jim Mitchell. As little mice ran notselessly across a sanded foor in nocturnal raids out ran the brother oi the Hon. Theodore Allen and the admiring Jem; and siiently they locked the door behind them, Had tae warder been weak enough at that moment to express his satisfaction with his literary repast, by even the faintest sneeze, the Penitentiary would know him no more. But he was perfectly tmmovable. ‘Tne confederates looked at one another inquir- ingly and then glanced at the ceils. The question was asked by Jim witha twiten of the mouth, and by Wesley with a shrag of the shoulders, “Shall we ict ali. the fellows out and take them to vote in the Fignth ward?’ “Not by a darned sight. I’m the Eighth ward.” A RUSE DE GUERRF. They had passed behind the warden, and were ting near the first door, when Wesley recollected that perhaps his key Pk ith Not fit, Here was a difiouity tobe oer an Lb lipety anos Sones bt to suap his fingers at Judges and juries—t — wan equal oi the ‘occasion. Ratsing himself from us crdachita position Wesley took @ small ea ea the “the gor floor nat care ww to 4 ther Ride q sai ctonn iy te = noise of the falling doing 80 turged an Je of the corridor wall. This was ene Seapets eel, ee and Jim if ~ ay titul welded ayy CUO Goor, ane ers aces ae fit, taanks to We genercas “OE WHO Dru. them, an’ thanks to two women who were theré & weox before and took away such good impressions of the place—in wax. THR RSCAPR, Familiar with every tarn and twist in their wi out, the convicts were able to open the doors an successfully evade the notice of every warden and man on duty, But it took iong»r than they thought it would, for four was sirikin, trom the soit-toned belis of Auburn when a! len. ui they reached the outside of the Penivenviary and received the warm congratuiations of ther confederates from New York, who were walting patiently with the carriage, hides Wes! you out agin’, eh? Well, mason of p yet And then another delighted young man wonld slap him on the back and say, afectionately and admir- imgly:— day ! Yowrea son ofa ——! What! And so the hours were beguiled with mutnal compliments and congratuiations (In which Jim Aitchell was not for- gotten), while the carriage rattied on toward a distant, railroad station, which was reached in due time, Of course the New York friends of Mr. Allen did not goto Auburn unprovided with money and necessaries; and so it was that Wosley and Mitchell found them- selves on FTiday morning in the New Dominion ciad in irreproachable broadcloth and with a hand- fui of pret paper bearing tho ornamental signa- ture of Treasurer Spinner. It 1s only twenty hours? rige from where Messrs. Wesley Alien, James, Mit- cifell and their political friends sat down to dinner on. Friday to the blessed Lighth: ward of New York, and they all knew it Far into the night the nolse of singing and laughter, mixed with strange oaths, proceeded from that Wayside tavern, and salnted the eara of belated Kanuoks tramping homeward through the snow. At ight in the morning the same shivering Kanucks on their Way to Work saw 8iX men steal out trom the sane tavern and take the road toward the ratl- road station, On Saturday morning a strong from the Lighth ward met them, on their arrival im New York, and thea @ll baudg Went vigorously work at repeating,