The New York Herald Newspaper, December 6, 1870, Page 5

THE Annual Report of Seeretary Boutwell. f Qperations of the Treasury Wepart- ment for 1870. TREABUBY DXPARTRANT, Deo. 5, 1870. Sm—The financial condition of the country hes improved during the past year. The average rate of gold for the year 1669, as shown by weekly sales, was 83.9 per centum premium, and for the drst eleven maenths of the year 1870 16.2 per ceptum premium, dudicating an improvement in the value of paper currency of about seventeen per centum. From the 406 day of July, 1860, to the Sth of June, 1870, waciusive, the public debt, as shown by the Warrant account, was reduced in the sam of 101,001,916 88. From the first day of December, 1909, to the 30th day of November, 1870, inclusive, the reduction was $119,251,240, as shown by the monthly statements of the public aebt; anda the ‘otal reduction from the 1st of March, 1869, w the Jas of December, 1810, was $191,154,700, ‘The onsequent reduction in the interest account 1s at the rave of more than $10,000,000 per annum. REOHIPTS AND EXPENDITURES OF THR GOVRRNMRNT. The receipts tor the fucal year euding June 30, 1870, Were as follows :—~ 4, 374 28,287, 762 8411, 900,407 were:— For civil and miscellaneous purposes. Fee Tndiane ‘and penslous Interest on puvile veb: Total. moe This statement exht a surplus applicable to the ‘payment of the public debi, including the amount pledged to the sinking tund by the act of February ‘25, 1862, of $101,601,916 88. ‘The receipts for the tirst quarter of the present fiscal year were:— The expenditures for the same p: riod, excluding payments on account o! the sinking fand, were:— 9 88,662,0 Ing three quarters of the present year are as follews:— ‘Total........... seen sees. «244,000,000 The estimated expenditures for the same period are:— Dor civil and miscellaneous purposes. ar 4 Total. “* 203,000,000 Showing 8 balan of the national debt, including, however, the amount payable.on account of the sinking run. of $60,088,300. In estimating the expenditures fer the next fiscal Year I have included the sum of $24,500,000, properly chargeable to the current revenue as an appropri- ation under the acts of February 26, 1862, and July 14, 1870, relating to the sinking fund. AJthough the language employed in those acts is not the language commonly used in appropriation bills, 1t still has the force and effect of @ permanent appropria- tion. I, therefore, so treat it. There will be required also the sum of $4,860,933, being the amount answering to the interest on the capital of the sinking fund, as represented upon the books of the department, Thissum I nave include in the estimate of expenditures for the fiscal year ‘ending June 380, 1872. Upon this basis I submit the following estimate of revetpts and’ expenditures for the next fiscal year:— MSTIMATED REORIPT@ AND EXPENDITURES FOR THE YEAR ENDING JUNB 80, 1872. From nteroal revenue According to this estimate thero will be a surplos applicable to the payment of the principal of the public debt, in addition to the payments made on that account through the sinking fund, of $10,778,680. An analysis of expenditures develops facts tending to sustain the opinion that the balance will be considerably larger than appears from the foregoing estimates. The sum of $22,338,278 is ihe estimate for public works. The appropriations for these objects for the present year are less than $12,000,000, and it is reasonable to presume that the appropriations for the next year will not much exceed that amount, It ts believed, also, that the estimates made by the several departments forthe different branches of the public service are for the maximum amounts which will be required under any circumstances, If such is the case there will remain on the 30th of June, 1872, unexpended balances to be covered into the Treasury. It may, therefore, be reasonabiy anticipated that the total reduction of the public debt during the next fiscal year, including payinents on account of the sinking fund, will be about $50,000,000, It 1s a neticeanle fact that the estimated expenditures for the next fiscal year, includ- ing payments op account of the sinking fund and for the interest on the public debt, are so nearly equal to the receipts as to justify and demand the greatest caution in dealin, ith the revenues and business of the country. It {9 apparent that @ disaster or even a serious check to business weuld reduce the revenues below our expenditures. It is apparent, also, that the prosperous condition of the country is largely due to tho revenue system inaugurated during the war, by which manufactures and the mechanical rts have been extended and _ established. Ths policy cannot now be rashly aban- doned or suddenly and radical) changed without great injury to business and labor und serious COusequent losses @f revenue, The war in Europe has rendered it impracticable to refund the mational debt as authorized by act approved July 44, 1870. A portion ef the paper has been manufac- tured and the preparation of the plates has been so far.advanced that whenever a favorable opportunity arises the loan may be offered and the bonds delivered without delay. Inasmuch as the war in Europe and the ceusequent demand for money make {¢ douvt{ul whether the four and four and half per cent bonda will ve taken, it seems to me wiso to authorize the issue of 300,000,000 additional ef bonds bearing interest at tie rate of five percent. The interest can be paid quarterly without inconvenience, and I, thereiore, reapectinily recommend that the loan act be se moaified that the payment ef interest may be made quarterly instead of semi-annually. Should taese Fecommendations be approved by Congress, it is of great importance that an act authorizing the chapges Ue passed wiihout delay. OURRENOY PALANCES. Since the Ist of July the currency balance in the Treasury bas been Unusually and Jor immediate purpeses unnecessarily large. Whe act of July 12, 1870, authonaing @u increase of national bank notes, imposed upon the Secretary of the Treasury the duty of providing for the redemption «of equal amounts of their present certificates. The certain though pro- greasive decrease in revenues, both ef coin and cur- rency, made it my duty to reserve @ sam suiticient to enable the Department to comply wit the iaw without resorting to extraordinary means. Happily the fnan condition of the country has not been unfavorably affected by the eccumulations on the ‘Treasury. During the ending September 50, 1870, the na- ban paid in interest tne sum ef $6,486,172. It is estimated that of this sum two mil- lions were paid to private parties, I cannot doubt Alat the practice of paying interest, except upon balances due from one government to another, is a means by which large amounts of capital are dl- verted from tho extreme ens of the country to the commercial and financial centres, to the injury of business geuerally. ‘The province of a bank 16 to lend money, and its proper duns is, by loans and a facllitate and devel, masiness in the Heighverhood of its location. Asa matier of fact, unger the present system banks are agencies by widen cablial is walcred Ln Wad weDL aWaw jo dit te FINANCES. | eal ‘Ant ert'ys, there to be loaned on call and used for Bpecuiative purposes. WATIONAL BANE NOTES, Complaints are made from all parts of the countr; thas the bills oF the national banks ate worn defaced W such an extent as to be mo longer Mt for circolaion. A’ Many new haaks Are soon Lo be or- ganiseu under the law of she last session of Con- ree, 1 kegpecituly recommond that an appropria. ‘on bo made and antbority given for the issue of new bibs, upon such pay ‘po gach fortn as may bo designated by the Seorctary of the ‘Treasury. The Coinprroiler ef the Currency, In bis report fur 1809, Feoomnmoended the estad/shment of an agency ip the wily of New York, under the contro! of the national banks, for the redemption their bwuc. Tae sub- stance of tals recommendation seems to me not enly proper but ncessary, ‘The expense should be borne py the banks, Coupled with the recominen dation Vrake this occasion to Bay that the vanking system of the coantry appear to be well manage, and to answer reasonably the pul 4 for whien It was ed. it ia nO doubt true that treasury notes re) tin @p equal amweunt of public debt, without interest, are mest economical, ctreulation for the government; but it should be considered that the banking institutions of Lhe cvnn- try ure agencies by which business is estabiisiied and fostered. Upen the whole, the system of bank- ing should be oxtended ony fer the Eornae of meeting the demands of business, but when the.de- mands are urgent the concession should be made upon the ground that the prosperiiy of business 18 roore important than the were saving of interest arising from the circulation of Treasury notes, ex- clading re-deposits, The amount of geld and silver deposited at the minis and its several branches during the last tseal year was $80,408,758; the coi- age lor the year was $24,636,011, aud the vaiue of Gold and silver bare stamped was $8,748,852. THB MINTS AND COINAGE BYSTEM. Irespectfully ask the attention of Congress to the bill prepared in this departineat and submitted at the last session, and to the een? report re- Jative to mints and the comnge system of the eoun- try. The bill was prepared with care and has since been submited to tho criticisms of a large number of practical and sclentifie men, whose views have been published by autherty of Vongress. During ‘ne year the several branch mints and assay oflices have been visited and examined by Mr. Knox and of Dr. Lindermans. ‘Tho assay ofice jeise City, rt is nearly completed, and will juire @ small appropriation for ihe commencement of buai- neds. Provisien shouid be made for the redemption o} the bronze and ether toxens issued by the govern - ment ‘The repert of the Commissioners of Mining Statistics tor the year 1469 has been prinied stace the close of the session in Jaiy last, and chat for We year 1870 will be made during the winter. AMERICAN TONNAGP. ‘The continuance of the war appears to be a matter of natiofal impertance. The preportion of Ameri- can vessels engaged in the foreign trade has not in- creased relatively during the year, although there has been an actual ticreuse in the entries 02 Ameri- can vessels at tue ports of the United States amount- ing In the aggregate to 130,000 tons. The tetal ton- nage en: in the forcign trade entered at ail of the ports of the United Staves has increased trou. 6,683,000 tons in 1869, to 5,957,000 tons in 1870, but the proportion of American tonnage remains as in 1869, at thirty-six per cent. Without undertaking to speolfy the means by which it is to be accomplished, 1 cannot overstate the importance of such iegisla- on as will secure a revival ef American commerce. THE LIGHTHOUSE BOARD. ‘rhe reper of the Lighthouse Beard sets forth in detau the difficulties whieh have arisen in teat branch of the public service from the operations of the fifth section of the act of July 12, 1870, making appropriations fer the Jegislative and executive ex- penses of the governmeat for the year ending June 30, 187]. The lezislation asked fer by the Board seemed to me to be necessary. THR COAST SURVEY. ‘The report of the Superintendeat of the Coast Sur- vey gives @ brief but satisfactory statement of tbe progress made during the last surveying year. On the 1st day of Octover last regulations were issued cencerning the transpertation of merchandise frem the perte of importation to certain other ports in the United States, without appraisement or liquidation of duties the port of arrival, agreeably to the provisions ef the act entitied ‘An act to reduce in- ternal tax, and for other pi ” approved July 14, 18670. A copy of the regulations will be trans. mitted te Congress. In the nature of the cases the regulations are stringent, but when the railway companies shall have given the bonds reguired, and the importing merchants of the interior cities shall have made arrangements for the importation of goeds upon the basis of the act, J am satisfied that ne serieus difficulties will arise, either to the ratl- Ways, the merchauls or the government. Without deubt, the act increases the opportunity for the in- troduction of foreign goods into the ceuntry in vio- lation ef revenue law; but the examination which 1 have given to the subject in the preparation of regu- tations leads me to think that the buswess can be safely conducted. COLLECTION OF CUSTOMS. The appropriation for the expenses of collecting the customs revenue under tle act approved May B1, 1866, is at the rate of $4,200,000 annually, in ad- dition to such sums as may be receivea frem fines, Penalties, and for fixtures, and from sterage, cart- age,drayage aadlabor, Experience has shown that (nls amount is insufficient, and 4 deficiency app ro- priation will be needed at each session of Congress, until the rmanent propriation is increased. I have instituted a caretul supervision in the Trea- sury Department over this branch of expeaditures, and agents are employed in investigating the expenses of the custem houses of the country for the purpose of ascertaiming whether @ reduction of the number of employés or salaries is practicable. By this means some saving will be effected, put it will in the event be 1mpessible te re- duce the expenses within appropriation. From 1858 to 1886 the permanent appropriation was at the rate of $8,600,000 per aznum in addition to the re- ceipts before enumer.Wed as appilcable to this branch ef service. From 1856 to 1860, Inclusive, the total receipts from customs were about $272,000,000, and the expenses of collection were $15,879,000, or at the rate of more than five anda half per cent. The receipts for the year ending June 30, 1870, were $194,538,374, and the expenses $5,912,113, or ret exceeding 3% per cent. Frem 1868 to 1860 the revenne collected did not exceed an average Of $50,000,000 a year, and ihe temptation te smuggling and fraud was much less under a low sys- tem ef duues than it is at the present time. At the principal importing cities of the country it is neces- sary to employ a large force for the protection of and water the wiiarves lines “within or near such ities. It 18 also necessary to guard against smuggling by the presence often of several Officers upen and around tne steamer and other vessels Iraperting large quantities of goods while engaged im discharging their cargoes. It is also apparent that the extensive line of ceast on the Atlantic and Pacific oceans and the Gulf of Mexico, everywhere furnishing opportunities for the itroduction of goods tn violation ot the revenue laws, requires the presence of a large number of skilful and trustworthy persons, Tne acquisition of Alaska, the establishment of interior poris of en- try, the accommodatien of business Py rallways and gieamers on the Northern frontier add ma- terially to the expense of collecting and guarding the revenue. I therefore respectfully re- commend the increase of the permanent appropria- tion for collecting revenue from customs te the sum of $2,€00,000 for each half year frem and after the 30un day of June, 1870, At several of tke Important ports there are lwo appraisers, whose powers are equal. Irecommend such an a'teration of the law aa will previde for one principal appraiser at each port, who shall be responsible fer tae business of the office, BUILDINGS UNDER TEE CARE OF THE DEPARTMENT. The Treasury Department kas the care of one hun- dred and ten public buildings that are completed and ef seventecu more that are in tke course of erection, all of which had cost on the 30th of June last $85,900,993, The apprepriation for the repair and preservation of these buildings for the current (ea 1s $100,000, 4 sum manifestly inadequate, oeing less than one-third of one percent. Unless larger annual appropriations are made the buildings will rapidly deteriorate in value, and finaliy will need much larger repairs or tie erection of uew ones in their stead. With the increase ef population in the country ap- peppeasions must be annually made for the erec- ton Of post offices, custom houses and other puvlic buildings. The present mode of inaugurating these Works seems to me unwise, Appropriations are often made without sufictent information upoa the subject. It istrue that when a proposition is intro- duced into Congress tor the erection of & public building the subject is referred to the Treasury De- partment, and by the Laer 4 to the Supervising Archatect of the Treasury ; but 1 1s also true that tae Supervising Architect has only general informatien upon the subject, and in answer to a sudden cal), and Without time for the preparation of plans and esti- Mates, he cannot give a safe opinion as to the necés- sity or the cost of the work. I respectfully reeom- mend that hereafter, when applications are made for the construction ef public buildings, the frst step on the part of Congress will be to instruct the ‘Treasury Departunent to make careful inquiry as to the necessity of the werk, and aiso te prepare estimates to be laid before Congress, This being done ‘aud the work autnerized, it Wweuld seem to be wise te muke a single appropriation suMcient to meet the entire cost, and then held the department and the Super- vising Architect responsible for the speedy compie- tion of the building substantially upon plans duly authorized and within the estimates. [ am satisfied that much waste of public money occurs and much complaint on the part ef cliizens arises from the emall ‘Seproprtnone which are made irom year to year. The Inevitable conseguence of the policy 1s Ibat the public worke are injured in construcuion and creased. precess of the expenses are largely in- THE NEW YORK POST OFFICE. The Supervising Architect of the Treasury states im his repoit tuat the expenditure authorized vy w for the censtruction of the post eftice in tne lty of New York will be inadequate, unless the enaracter of the work 18 changed frem the original design. Jt seems to be due te ihe city of New York, for general and 3) ‘ent reasons, and In considera- tion of the fact that a ve ene site — been ured by ihe co-operation some degree at the expense of the city, that the building should not only be s fireproof structure, but aiso ef aoch design and workmanship as to rank among the vest Public buuddings of the country. £HE REVENUE MARINE SERVICE. At the present time there are twenty-four mers and ten sailing vessels @ttached to the re- venue marive service, the aumber having been re- duced daring the year by the sale of two vessels of the latter class, At the third session of the Fortieth Congress an ap riation of $300,000 was made for the censtraction of four steam revenue cutters. Al- ter proposals ad been issuedand bids received, which were rejected, ander the impression, on my part, that the public interests did not require vessels of large size as those for which proposais had bee! duped, lappauwied » cpmmismon by letter. dated December 16, 1849, conmeting of Captain ©. T. Pat terson, of the coast survey; Captain Douglas Ottin- ger and Captain J. H. Merryman, of the revenue Marine, and tnetructed them to consider and report upon the character of the vessels best adapted to the service. Final action in reference to the con- siraction of the vessels anthorized was delayed for report of the commission. That re- ort was made on the ist day of lay, 1870 (executive document No. 93, Senate, second session ef tue present Congress). Upon the completion of the work of the comim|ssien gee were acain Issued for the construction of he four vessels authorized by law. Sausfactory bias were received, and on the 22d of July anc the 22d of August last contracts were made. ‘The construction given by the Comptroller to the tifth nection of “the act meking Appropriations for the legisiauive, exe- cutive and judicial expenditures of the govert- ment” for the year ending the 30th of June, 1871, rendered the appropriation unayailable, and it therefore became necessary te notify the parties to the coniracts that they must be considered as nall and void, One of the parties has asked to have nis contract formally annulled, which has been done. 1 recommend & renewal of the appropriation of $300,000 for the construction of steam reve ters, without Limitation as tothe nombe. ih Won aH Lo ihe size of the vessels to oe built. ‘Tbe report of the commisston shows that thirteen of tne vessels now in use are eiluer old Or MOL adapted to the #er- vice. The opinion entertained by ine that uae vex sels In ose are larger than Lue nature of the service required is conurmed by the repert of the comuis- sion. They recommend that the number be reduced to tnirty-two, and ube aggregate tonnage reduced from 9,208 tons to 7,175 Lone. ‘They also state that it Will be practicabie, upon Lhe proposed basis, to reduce the toial number of oficers, pilots, petty oflcers and men from },266—the number then tn service—to 1,061, apd toe actual expense Of maintaining the system, HOt Including appropriations jer the con- struction Of new vessels, irom $1,146,490 to $943,039, making @ saving of mere than half a million of dol- lars a year. The report of the commission is the result of & careful and comprehensive examination of the subject by competent men, and while 16 Is the present parpose os the department to ct upon it L am of the opimion tat i should receive legislative sanction. OFFICERS OF THE REVENUE MARINE. On the 9th of July, 1869, 1 convened a Hoard of Examiners, wbo were charged, amoug other tunings, wiih the examination of the officers of the revenue marine. The Board ts composed of Captains Faunce @ud Slicer, of the revenue marine, and Captain Pat- terson, of the coast survey. ‘Tlie examimauion has not yet been completed, as only a small number of officers could be detailed for examinailon at the same time. One hundred and ten ileutenants have beem examined. ‘fen first lieutenants, nine second Meutenants and sx third tleutenants were reported for removal and have been removed. ‘rhe vacancies thus created in the first and second grades were filled by proimotions and the vai es In the lewest grade Will be filled by qualified persons selected at large. The examination ef ihe remaining officers Wuil be continued, THE MARINE HOSPITALS. The condition of the marine Nospitals has been im- proved during the past year, ‘mis result 1s largely due to Dr. J. 5. Bellings, of the Surgeon Gemeral’s oftice, whe has visited nearly all of them, and Ubrough whuse advice maby Important changes have been made. No appeintment has yet been made of @ superintendent under the act of the last sexsion. ‘The authority therein granted te appoint a superintendent 1s desirable, aithougn the saary dees net appear te ve sufficient. 1, hewever, recommend such an alteration of the law as will permit tee President to detail & surgeon of the army or navy to perform the duty of supermtendent without any addition to his pay other than his necessary travelling expenses. Witi such authority the department could have the bene- it of the servicea of Dr. Billings, or some ether competent surgeon, with less expense than would be invelved in @ regular appolatment even with the present salary. Five of the principal ports of the country—New York, New Orleans, San Fran- cisco, Baltimore and Philadeiphia—ai hospital accommodations, and provision is for the patients by contract with hospital or private ‘The W epartinent 18 in possession ofa very desirable hospital at New Orleans, known ae the Sedgwick Hospiial,and I earnesily recom- mend the passage of an act by which the building may be transferred to the Treasury Depurtment for & marine hespital, and an appropriation made for the purchase ef the land on Which it stands. At the last session, the attentien of Cengress wus called te the subject of transferring Davids Island, at New York, frem the War Department to the Treasury De- partment, for the establishment of a mariae nospl- tal. Tols recommendation is Dow respectfully re- newed. THE ALASKA SEAL FISHERIES. In compliance with the act of July 1, 1870, in ref- erence tothe seal fisheries, papers were issued and bids received for the exclosive right to the fish- eries for the term of twenty ‘The phraseology employed in the act warranted the interpretation that the contract should be awarded to the Alaska Cemmereial Company, if their proposition was as Tavorabie to the gevernment as that of any other party, and upen that basis the contract was awarded Indeed, might turnish nothing tangible in justifica- tion Of the act, Bo, too, in custom honsés or col- lection districts, a branch of the service will fall to meet just expectations, althoagh no be een may be traceable to any person eonnected with the office, In sich eases the interests of the govern- ment demand a change, and a change must be made witbout @ hearing of the pariiee concerne J way be Warranted in maying, in this that the evil of omee-seeking, although great, i» probably exagyerated in the public tamed. [tas true that there are more applications for appormtment omice in the departinent ihan Can ve tact, but the number of applicants who are well qualified, who could pass any proper examination, 18 not usually very large, Outside of the department and ip the several States and districts of the country the num- ber of applicants for iocal services docs not often exceed three or four to cach office, aud occasionally Where are Not more than two who are really 80 pre sented as to be cousidered in conwection with the appointment. Ym justitication of the present tenure, and as & proper recoguivion of the services of the officers ana clerks empioyed in this department, | express the opinion that the business, upon the whole, 19 not enly done in a satisfactory manner, but that it will compare I accuracy and efficiency with tue busl- ess of the country generally which is carried on by corporations or Individuals. TAXATION—THE PUBLIC DEBT. In my annual report of December iast 1 advised the contindance of the existing system of taxation as ap exsenutl condition to tle success of the pro- vesed joan. [he circumstance that war was de- clared between France and Prusdla simultaneously nueetton, with the passage ef tne Loan oil, pul it out of the power of the department to make the negotiation, as had been expected. whe targe revenues, however, of the government continuing, without material abatement, until the present tine, improved the credit of the country, enabled w ‘Treasury Department, by weekly purchases, to duce the amount of surplus bonds offered 10° sale, and contributed to depreciate the market value of a. Lulso expressed the opinion that the settied polley of the country should contemplate a revenue sumti- clent 10 meet the ordinary expenses of the govern- ment, pay the interest on the public debt and from twenty-live to fifty millions of dollars of the princl- pal annually, The reduction of the public deot since the join day of June lasi has peen +o great as to render it certain that the tow! reduction jer the present fiscal year wii! Exceed $69,000,000. ‘The natural increase of the business of the ceuntry during tLe next eigkteen months is likely to be suc: ag to Show a@ surplus for the fiscal year ending Ju BO, 1872, Of about $40,000,000, The prin Loft the public debt on the last day of Nevember, 1870, mot deducting moneys on hand was $2,418,673,044; of this amount $5% 0,237 was represented by United States uetes and frac- tional currency not bearing Interest. ‘The bauks of the country acting withn the autho of existing laws will require aooat $393,000, 000 « bonds te be placed on deposit as security for weir circulation. Should the present system of furnish- ing @ paper circulation for the Country partly by the Treasury and partly by the national banks be contunued, or the entire circulation be furnished by the Treasary or by the banks, the credit of the United States will be the security for the redemption of the notes, From this view of the policy of the country it follows that about — $800,000,000 the public debt will remain unpaid, existing elther inthe ferm of ‘Treasury notes in cir- culation Without interest, or in bonds owned by the banks and held as security for the redemption of their notes, and tnat only about $1,600,000,000 of the principal of the debt is sugject to payment The Hnancial prospect, although highly faverabie, is not such as to warrant important changes in the reve- nue system at the present sessien of Congress; but should the result during tae coming year mect my expectations It will be possible at ike December session ef the Forty-second Congreas to make a very material reduction In the revenues without impair- tag the ability of (ue government to make satisiuc- wry payments of the pudiic debt. the reduction already made has been advar- us tO the country, BOt only in the particulars indicated but in other respects hardly jess impor- tant, There is much evideave tending to show that no other eveut since tae conclusion of the war has contributed eo much te the diffusion of republi- can opinions in Kurope. fhe spread of these Opinions suinulates emigration from kurope and at the same time prepares the way for the establichment of free fastitutions en that Continent, Nor can there be avy doubt that & policy accepung the debt as permanent would retard emigration from beled 4 especially ef the reading und reflecting classes. Whatever argu- meats may be adduced er whatever theories may be advanced, the fact must ever remain that a pub- lic debt 18 @ puvlio evil. It 1s especially burdensome to the laboring classes, and it 18 therefore in their interest to provide for the constant reduction of we existing national debt. ‘This policy will not prevent such changes in the revenue system frem time to time as will equalize the inevitable burdens of our present condition, and within a comparatively short period the taxes may be removed from many aru- cles of prime necessity. It 1# the occasion of satisfaction that no ether to that cempany.. A copy of the contract and of ths Pon! connected therewith will be trauamitted to ‘01 is, Abeut ‘eighty-six thousand seal skins have arrived at S:.n Francisco as the product ef the year 1869, On which the owners nave paid one dollar each, as required by the #.xth segtion of said act. SALARIES OF TREASURY OFFICERS. I considered it my duty to call the attention of Congress to the inadequacy and inequality ef the salaries of the officers in the ury Department as fixed by law. ‘fhe offices recently estavished are supported by proper salaries, but the salaries at- tached to many of those created at ihe organization of the government are insuMicient. As & temporary means of alleviating the samitted evil Con- gress has, from tine te time, and fur many years, annually made appropriations te be used at the discretion of the Secretary for additions to salaries of officers in the art ment. In the nature of the case this 1s a disagreea- ble duty for the Secretary to perform, is usually un- satisfactory to the parties interested, amd the resuit bas not the saction and suppert imcident to a system of specified salaries estabished bylaw. At the pre- sent tine the sum of $21,600 18 distributed by the Secretary in his discretion, After a careful exami- nation of the subject | tind that aa additional appro- Priation, mot exceeding $16,008 a year, will we suli- cient to provide adequate salaries for the officers of the Treasury Department. EXAMINATION OF TREASURY CLERKS AND EMPLOYES. The act of 1853 in regard to the examination of clerks has been ebserved by this departinent, and With beneficial resuits. Jt is worthy of censidera- tion, however, whether it would not be wise to pro- vide by law for an examining beard, the majority of Whose members shouid not be oMcers of the depar' ment to which the clerk 18 te be assigned in case ef appeintment and approval. This system should also be extended to the principal custom heuses and revenue offices ef the country. By suet an arrangement o detinite security wouid be taken for the character and quaiifications of clerks, a8 faras they can be ascertained or tested without actual service im the discharge of efticial duty. Jt 1s well understood, hewever, that no ex- amination can furnish security chat the person examined will preve satisfactory upon tal, and there should always be a speedy and easy method ef removing such persons from omee. I net, there- fore, accept the idea that the tenure of ofltce for the clerks and empleyés in this department should be changed. Indeed, [ believe that the pres- ent tenure of office farnishes the best security which the people of the country can have that the business of the governinent will be etiictently and properly perfermed. The work of the Treasury Department does not differ essentially frem the business dene in the bankiug houses und merchants’ counting rooms, and there 18 no reason why the tenure of office sheuld be permanent in one case that does not appiy with equal ferce in the others. {t does happen practically that there are in the ‘Treasury Department, and in every burean and office of tt, men who have been cennected witn the service for several years, and Who possess all tae knowledge, derived from experience and traditton, that Is essential to the performance of their duties. Excluding the employes of the Bureau of Eu- graving and Printimg, and the measen- gers and jaborers, there were 2,143 officers and clerks connected with the Treasury Department at Washington on the Ist day of Novem- ber, 1470, and of these 1,459 were in office on the 4th day of Marca, 1869, leaving 654 as the total number of appointments made since that time. Previous te the war the business of the department was 60 small that on the ist of March, 1861, only 433 persens were employed, ana of these Ofty-seven are aow In the service. One has been in effice ever fifty years, two others over forty years, one over tuirty-flve years, seven ever thirty years, ene over twenty-five years, ten ever twenty years, fourteen over fifteen years and twelve over ten years. These statements snow that the changes in | the departments are not 80 Qumerous as to deprive the service of the knowledge derived from experi- ence, On the ether hand the introductien of new men secures additional energy and eficiel Two exrors prevail in the community tn connection with the subject. One t# that under a republican govern- ment every man has a right to an office. Tms is im no sense true. The only right 18 that of the people toclect and to have appointed to office persons best qualified to perform the work. ‘The other error is tuat offices in the Treasury De- partment are prizes, which the young men of the country may wisely seek. Speaking generally, it is @ misfortune to a young wan Who pessesses even erdinary capacity for business or labor remain permanently im the public eifcea of this city. it 1s, however, true that many of the most valuable clerks in Lue Trea- sury are yeung men who are pursuing professional studies, or wio, having completed the course, re- main frem one to four years i the department, with the purpose, by tdustry and economy, of se- curing @ small amount of money with which to com- mence active life elsewhere. A system ol life tenure would excinde all these men from the scrvice, un- less they chowe to accept it as erinanent pursnit, which in the main would be jajury to them and to the country. [ am also fully convinced that any more, permanest ienure of office would materially impair the efficiency of the revenue system, There are many thousand men empleyed in the cosiom and Internal revenue service, and however careiui the preliml- Dary examination might be, the evils which vew 1m- pair the efficiency would andonbtedly exist. No system of examination could exclude ail those Who are dishonest, or who, under the pressure of ne- cossity or the offer of sudden wealth, migBt yield to temptation. 11 often happens, and it would happen under any system, that men are found who are honest, temperate and apparently capabie, and | changes in the ‘standing committee: natien ever passed Wwrough @ great war with 6o slight a sheck to industry and business. Specific information and general intelligence from various parts ef the United States show that all classes, and especially the laboring classes, are in the enjoyment. of more than average prosperity, whether tested vy the experience of this ceumtry or by the present condition of other gations. Ne reason can be found, however, in the favorable condition of public and private affairs for neglecting any proper means for equalizing aud diminishing the burden of taxation; but it does justify the statement that the nation can ake provision for the pubilc debt in the manner recommended without embarrassing 118 in- dustry or retarding its progress. GEV, 8. BOUTWELL, Secretary of the Treasury. Tips PResipent. AFFAIRS, ig The Board of Aldermen. The Beard of Aldermen met yesterday afternoon, and ordered gas lamps to be placed in front of No, 96 Spring street, Grammar School No, 34, entrance of Church ef St. Rose of Lima, Demilt Dispensary , corner of Spring and ENizabeth streets, and ordered removed tne lainp opposite No. 130 and 132 Bowery. A resolution t lay gas inving and erect lamp posts in Fifty-seventh strect, from Lexington to Eighth avenne, under the direction of the Com- missioner of Public Works, was taken up and passed. The drinking hydrant now on the northeast was erdered removed to the southeast corner of Desbrosres and West streets, Belgian avemient Was directed to be laid on Second avenue, rom Ninteenth to Twenty-sixth street; Bayard, frem Bowery to Forsyth; Thirty-sixtn street, from Ninth to BE Astor place, from Fourth lleventh avenu avenue to Broadway; Eighth street, from Fourth | avenue to Broadway. A resolution that a crosswalk be laid across Worth street, from the southwest to the northwest corner of Chatham street, and that the Board of Assessors make an equitable assexs- ment of the expense among the owners or occupanis of all ee houses and iots te be benelited by it, was passed, The Board of Assistant Aldermen. After the reading of the minutes of the previous meeting the President announced the following * occasioned by the decease of Assistant Alderman Rogers:—De- partment of Public Works, Aldermau Hampson; Committee on Finance, Alderman O’Brien; Commit- tee on Roads, Alderman Robinson; Committee on Streets, Alderman Reilly. A resolution was adopted directing the Cemmis- sioner of Public Works to have the chamber of the Board of Assistant aldermen repaired, refitted and suitabiy furnished under the direction of the Clerk of the Board, The Commissioner of Public Worka was directed to have the foliowing streets paved with Belgian pavement:—Thirty-third street, frem Fourth avenué to the Kast river; T'wemty-second street, from Feurth avenue to Broadway; eventy- fourth street, frem Madison to Filth avenue; Dowu- ing street, from Bleecker to Varick strect, After the adoption of a nuraber of general orders pertaiming (© gas lamps the Heard adjeurned ull Monday. THE BROOKLYN COMMON COUNCIL. Important Vetoes by Mayor Kualbfleiach. The regular weekly session of the Common Coun- cil was held yesterday afternoon, the President, Al- derman Bergen, in the Chair. A communication was received from Mayor Kalbfetsch disapproving the resolution passed at the last meeting of the Board awarding the payment of $500, the amount ef the bill of SM. Vibbard, Serveyor, for services rendered during the months of Sep- tember and October on the Gowanus canal Improve- ment. The veto is based upon the ground that there is n@ guarantee as to the limit of such Dil!s, and in- asmuce 48 $13,000 have already becm paid to Mr. Vibbara for his services in the Gowanus work, the Mayor recommends that the Board decide as to the limit of the time when sucka claims will terminate. Piaced on file. A lengthy document in opposition to the proposed Purchase of grounas at hempsiead, L. J., and the construction Of @ reservolr thereon, citing legal points and opinion’ of experts agai the project, . He hoped that the Board would delay action in the mooted attempt to override his vote of October last on this subject. Calculations of engineers were not always Gurrect, ‘The fact that the East River bridge would cost many millions 10 excess of tue required estimaies was instanced as @ point in evidence of this assertion, The city owned cana at Ridgewood and a conduit avd reservoir at Hempstead, whick could be nade avail- ablo in the event of an increase of tue water supply being really essential, at a comparatively little cost. It may be, the Mayor aaserts, an unsuccessful attempt on their part to raise the surtace of the ponds at Hempstead, which the project contem plates doing. In support of thie latver theory he cites the vestim of Knogincer Burnett upoo the yer Jack the energy or the courage essential to he enforcement of the revenue laws—a duty which often requires sagacity and a kind o1 intelligence too subtle for discovery through forinal questions. Men who are thus unqualified should be removed from Ofce, and this Withou, pm Mvesueuton, which, subject of ntrattiication en Long Island, which is adverse to raising the surface of ead as tending to sappress the water from ihe surface. Fred to the Corporation Counsel to advise the Bourd as to the legal poate contained i Whe coi MAUD) CAUONy NEW YORK HERALD, TUESDAY, DECEMBER 6, 1870.—TRIPLE SHEET. TUE CURRENCY. Annual Report of Comptrolicr Huolbard. Operations of the Currency Bureau for 1870. Orrick ov THe ComprKoL eB CURRENCY, Was Novy, 7, 1870, SIKR—In compliance with the provisions of section sixty-one of the National Currency act, 1 have the honor $0 present, througo you, to the Cougress of the United Staies the following report Since my last anoual report thirty-seven national banks have been organized, making the total num- ber organized up to date seventeen handred and thirty-one. Of this number, five banks, to wit;— ‘The First National Bank of Utah, at Sait Lake City; ‘rhe Pirst Nationa! Bank of Leon, low: ‘The Furst Natienal Bank of Por mey, N. Y.; ‘the Howard National Bank of ungton, Vi; The Baxter National Bank of Rutland, Vt; were organized by the surrender ef circulating notes for that purpose by existing national! banks, and did Not Increase the aggregate of bank circulation. ‘Thirty-one banks have been organized ander the act approved July 12, 1870, providing for the issue of fitty-four milbens of additional nationa) baak ciredlation, names of the Danks ave us follews: Cixptta!. pringheld, Mo. 6100,000 nko Maysville, Ky. os 800,000 nd Planters’ Naloual Bank of Augusta, . Apetaris ‘ 00, hange Nationa, Bank of Chic al Bank of Brodhead, Win. I Bank of Shelbina, Mo... ational Bank of Oailfor National Bank of Columbia, i Bank of Menasha, Wis (opal Bang, Lh Citizens’ National Band of andria, Va Firat National Bao of Sieriing, lil. |... Firat Nationa) Bank of Ovlawa, Kansas Jacksonville National Bank, Ill.’..., ‘ Fayette National Bank of Lexington, Ky First National Bank of Watwek a, ll! . Firat National Bank of Dec First National Bank of Ti First National Bunk of ( First Natloual Bank of Sei owu National Bank of Ott National bi: 0. Firet Nat ichmo. First National Bank of Evansville, Wis Muskegon National Bavk, M Firet National Bank of Lap The aggregate capt 3,239,000, giving an average to each bank of about $104,600, aud distributed among the several States as follows:— ur, Mich. a, UN Capital, Tiinow, seven bavkn = 188 88,006 300,000 140,000 rt % 50,004 Kentucky, four banks 850,000 ‘Tennessee, four banks. 201,009 Virginia, two banks. 225,000 Georgia, one bank 100,000 ‘There are on fle applications for banks in addition te those enumerated — Eetimated Capital. From Alabama, fourteen applications. . 8 oO 000 , £200,000 om Dakota, one 100/000 ¥rom Florida, four 400,000 From Geo 1,600,000 Tinie - 1,600,000 £200,000 $3,000,000 1,500,090, 160,000 Michi; shi Ly 1 Pid } eighteen apy E From Montana,two. applica Tia00 rom Nevada, one a) i From New Mealeo, oue pp Heaton From Qbio, thirteen spol jeations 1,200,000 From South Garolina, two appitcatio: "880,000 From Tennessee, nine applicatior 1,000,000 From Texas, tour applications. 400,000 From las ag apo! cases ‘i eno Fi ‘irginia, seven ations. From Were Virginia, ve applications, 800,000 From Wyoming, on ication... From Wlscoaaii, nineteen applicaiious:. ‘The number of these applications is 250. and the amount of capital required to supply them all would be $27,000,000, Experience bas shown, however, that jarge number of applications are placed on file as caveara, to occupy the ground und te deter other parties from moving. Very many are specu- lative, and some, intended to be Dona fide, fall, be- cause when brought to the test the capital is want- ing. Tied through to @ complete organization. amount of capital in the Western and Southern States not permanently Invested or actively em- ployed in business of various kinds, but immediately avaliable for tue purpose of organizing national banks, cannot be very large, atid the impression that many mijitons of cash capital were awaiting the opportunity of inve-tment in national banking insti- tutions has not been fuily sustained. The provision made by the late act is undoubtedly for the supply of those States which baye less than tielr propo Uon, and would probably suffice to supply all rea- sonable demands even if net restricted in its distri- p th but The propriety of of such restricuens a from the date of the tully suggested. Under the provisions of sections three, four ana five of the act approved July tz, 1870, author- iziug the establishment of nauienal banks for the issue of circulating notes redeemable in specie, oviding lor tue rewoval expiration Of Oue year sage of the act is respect- institutions of this character are in process ot or- Yzation or Jn contemplation, two or three of which are in California, It was not anticipated that specie paying banks would be established to any considerable extent, at present, im those sections of he country Where @ paper currency based upon the egal tender issues of che government already prevails, although it was, and is still supposed that one or more gold banks might be estan- lished and successfully conducted in each ef those foreign trade is certain amount of business 18 necessarily transacted upon @ specie basis, if all the business of this kind tat B eon in the cities of Boston, New York, hia and Baltimore could be ‘coucentrated in one or two banking Institutions in each of those cities, lle extent weuld undoubtediy warrant the Xclusive accommodation. Under the operation of the act of Congress ap- proved July 14, 1870, “to require national bunks go- ing Into liqulaation to retire their eirculating notes,” twenty banks, which had been sominally im liqui- dation for various pertods ef time, nave deposited in the treasury of the United ptates legal-tender notes for the redemption of their outstanding circn- lation, and taken up the bonas pledged as security therefor, ‘The ameunt of such deposits since the date of my last report is $2,401,910, and the amount of bonds, at their par vaiue, thereby released is $2,706,000, All banks in liquidation except those in process of consolidation with other banks have now retired thetr circulation. Carefully prepared tables will be found in the ap- pendix, a8 follows:— # rsi—statement of amount and different kinds of bends held to secure cirouiation. Second—Banks in the hands of recelvers, Third—The uber and amount of each denomi- nation of bamk notes Issued, redeemed and out- standing. Fourth—The number of banks, amount of capital, bends and circulation in each State and ‘Lerritory. FuUih—Natvional banks im liquidation which have deposited lawful money to redeem their circulation and taken up their bonds. wth—Navional banks in liquidation for the pur- pose of consolidating with other banks. Secendi—List of expenditures for wie iscal year ending June 20, 1870, bignth—List ef clerks employed. Ninth—Reserve tavles, Since the organization of thts bureau to the Ist day of October, ultimo, circulatiug notes more or less worn and Inutilaied bave been returned by the bauks to be destreyed by burning to the ameunt of $30,007,518. Of this Bum $17,045,119 or more than ene-laif the total ainount were returned during the jast year, The rapidity with which tne national bank notes are becoming unilt fer circulatien, and are being retarned for destruction in order that they may be replaced by new notes, 18 constantly increas- ing, requiring a constantly increasing force of clerks wo attend properly and prompily to the assorting, counting, registranon and fimai buruing of the hetes, In the effort to protect the public trem the {mpost- tions of counterfeiters, which is being made by the proper authorities, © Would be well to throw every possible didicuity ‘im the way of the circulation of counterfeit notes. Fer this purpose it is recom. Menued ihat every national bank be required through its eMcers to stamp tne werd “counterteit’? upen every false, forged or counterfeit nationai bank note that may be recognized as such on pre- sentation ai the counter of the bank, When the capital of a bank becomes seriously im- Paired by losses or ollerwise, 1b would be desirable lor the Gomptrolier of the Curreney to be clothea with sufficient power to require the bank co be wound up, @ Rave 8 capital made good withio ® reasonavie time. As the law stands he can only rohibit the bank from declaring any dividends so bos as the capital of the bank. remains impaired, but the reseurces of a bank may be crippled and its use!uiness destroyed beyend hope of repair, and yer it may continue to live @ sickly existence fur years. In such cases the bank should be required to make Up the losses by aD assessment on iis steckiolders, or to @o into Nquidation and be closed. ‘The eperatious of te national bauks throughout the country during the last year huve been charac- terized by prudence and exemption from disaster to an unusuaiextent, The profits have not been so large as in former years, owing W various causes, among which may ve poled the decline da ihe pre. ES the banks named fs | Probably, if all these applications should be | granted, not more than halfof them wouid be = The | but one bank has yet been established, the Kidder National Geld Bank, of Boston, Mass., with a capital of $400,000. Informa. | ton has been received that several otaer | j employment of a very respects le amount for its | 5 oe « mium on gold, a redaction in the amonnt of trans. actions in government bends and consequent failing of in commissions, and the fact — thal, owing to the generat surinks ip value: which fas taken place, the panks gene- rally have zed their losses, and have charged of the bulk of thei bad debts, The result, however, may be regarded as upon the whole #als- fa Very thorough and mgid invesugasion bas n nade by ekiled accountants, commissioned as exammers, inte Loe mote of doing business, char- acter 0; the management and conditien, and the valu ‘f the +ase of the banks during the year, and i beem = ascer- that pis apd notes discounted are, uurkabie @X\tent, based upon bona Ade trans actions, while the accommodation leans are upl- jormly safe and wellsecured. The reserves required by law to be held, to secure the payment of ciecula- Ton and deposits, are as a rule kepton hand, and the general average of such reserves is ordinaruy considerably above the ameunt required, ‘The limitation of loans to one-tenth of the patd tn capital, & mest Wholesome restriction, is, in @ la majority of banks, carefully observed, and the loans are almost uniformly well distribated. In very few tustanees are the directors allowed t monopo- ‘able extent the facilities of- Complaint is made from time te the, and from Various localities, that borrowers are cempelied to PAY More than the legal rate of interest for money, and doubtless the complamt is well founded. On U8 question there If B practtoal suggestion or Lwo that may be profitably considered. ff the interest on the bouds deposited vo secure cirealation, and the use of the circulation and deposits, at the legal rate of in! wt, Wil net enable banks lo pay taxes, expenses and dividends equal to at least the cur: | rent value of money where the bank 15 doing pusi- | mess, the lewai rale Will be transcended, or the bank will Wind up. i his may safely be taken for granted. An attempt to compel tue instivunon Lo keep within the limits, under such adverse circumstances, will resalt in foremg it into liquidation. In nine eases ont of ten where these complaints are made, ie evil complained of Is caused by the high rate of tax- ation imposed by State authority, faxes enter into the cost of produciion, and are paid by the con- sumer; this is just as true of money as of any owner commodity. Formerly, when the bank circulation Was issued and the business of the country was transacted by institutions incorporated by State ie- gislatures, valuable immunitt:s m the Way of ex emption from taxation were geanted, in order that the banks might be able to furnish money to_bor- rowers at reasonable rates, and in most of the States the — legal ate of interest was fixed with direct reference to the privileges granted. Capital invested in banks Was pract cally | exempted from (axauon, in return for which immu- | nity the banks were expected and required to lend money at certalu specified rates of Luterest, while very irequentiy individuals were allowed bv law to lend money by special contract at much higher rates, The rates established fer banks, under the conditions referred te, sul continue, acd are sougnt to be enforced, but the immunities which enabled them Lo observe there rates have been taken away. ‘The privilege of issuing circulating notes Is no more valuable as @ franchise, under federal authority, than it always has been under State authority, The profits derived irom it are commonly over-estimated. A {alr estimate of the average percentage of profit on circulation Wil not much exceed five per cent, and this 1s just about the average rate of taxation aid by national banks; #0 that the profits derives rom the buginess of hanking depend mainly upon the amount of deposits, which after all constitute the true basis of banking. Circulation—that 1s, money or Its represetitative—ia the creature of the governinent, aud is w be relied on as a source of rofit only in the rudimentary stages of banking. The history of banking in tne older and weaitiier countries of the world furnishes abuadant evidence a8 to the truth of this statement. The reports of eighty-one joint stock banks of Great Britain of thelr operations during a part of the year 1869 illustrate the fact stated, Leaving out the Bank of England, which furnishes the great bulk of the circulation used in the Unived Kingdom, the banks reported employ an aggregate capital exceed- Ing €42,000,000, and their net profits for six months of the year 1869 were semewhat in excess of £3,700,000, or at tne rate of about nine per cent per annum. Reports of sixty-twe ks for the ix months succeeding the period embraced in the fore- going statement show a@ capital ef over £80,000,000, with dividends averaging five and hap sth ara per cent, and net profits not divided equal to one per cent, together making the net profits of the aixty-(Wwo banks, Whese reports are published, at tue rate of thirteen aud a half per cent per annum. In the United Staves the accumulation of cash capital is comparatively sai As in all new coun- tries mearly the entire capital i# reaaired for the transaction of active business and for the develop- ment of the resources of the country. The amonot of deposits, therefore, or money at rest, is small in comparison with the actual material wealth of the country; but tt is continually on the tnerease and by its aid the national banks are enabled to bring their earnings up to an average that has hitherto proved satisfactory to their stockiiolders, in yew ef all the facts, however, it seems desirable that the old relation between the rate ef interest and the rate*of taxation, established and observed by nearly all the States in which banks oi issue were author- ized, shonid not be entirely ignored with regard to national banks, and inasmuch as the power of Wwe States over the national banks in these two Impor- tant particulars 1s exercised only with the consent of the general government, it would be a wise pre- caution for Congress to fix such hmitations as would preveat unwise, unfriendiy, or otherwise | damaging legisiauon. Allusion has been made tn former reports to the custem of paying interest on deposits by national banks. The practice existed long before any na- tonal banks had an ext and they only con tinue to do what their pr agors did before (hem, and what bankers everywhere consider themselves competied to do. ‘The use of other people's money in the shape of | deposits, without Interest or at a low rate of inte rest, has come to »e considered a cardinal necessity of modern banking. There will always be those ready to accept iis cnstedy, assume ali the risks and pay interest ior its use fora margin of profit raug- ing from one to three per cent. It Ix not always the | strongest or wealthiest bank or banker who is wil- ling to pay the higiest rate for this ase of other peo- | ple’s money. Ordiuartiy, judgiug of banks as of in- dividuals, the one inost in need of money offers the In theory practice i induce 18 safi greatest the custom not always thoroughly tntreuched in its observance that any sweeping en: hibiting the payment of interest on deposits by nation#! banks would be evaded in some way, or the banks woud lose their deposits. There are scores of banks and bankers, not subject to the contro! of Congress, who wonld rejoice ever suc a prohivi- tion as over the discomflture of an enemy; yet there ig ene potut that should be guarded. The reserves of the whole country are held to a large extent in Boston, New York, Philadelphia and other large nts to deposiiora. dangerous, 1p bat, nevertheless, i is cities, These reserves should be protected. ‘They should be placed under sucht restrictions as woult obviate all necessity for their use by the depository bank. If the tustitations owning these reserves cannet afford to allow them to remain unemployed, so that they may bi reailty wuat they are in } Tame, relief should be affurded in some otlier way. | Ivis of vital importance to the country that no por tion of the percentage which the law requires banks to hold as @ reserve on circulavion and deposits showld be loaned out, subject to the vicissitudes and Auctuations of men and property. ‘There may ve prosperons and easy tines Tor years; but there may come & day when upon the ability of a single bank in New York cliy to pay the deposits of its | country bank correspondenta—tneir resery wiil depend the safety of the whole country, The banks. of New York city have paid as during the year ending with the suth of Septemper, the sum of $2,546,639 10; tne Boston banks, $588,272 58; the Philadelphia banks, $119,001 4.5 while the aggregate sum paid by all the banks that allow interest on deposits 18 $6,496,172 These large surus indicate the wide prevalence of uke prac- ce under consideration and the difficulty that would be experienced in any at entire abrogation. It by any me eueys held tn the large cities, cousututing the re- serves of the country banks, be exempt from the operation of this custom, the main point, and the oue in which, above ail others, the enUre public is Interested, wiil be gained. ‘The further consideration of this subject is sub- mitted to the wisdom of Congress. ‘The necessity for seme arrangement by which the notes of national banks muy be assorted and re- turned to the several banks of issue for redemption 1 becoming more and more apparent as the dim- culty of dealing with the worn and mutilated notes now In circulation 1s experienced, The argaments contained in former reports In favor of a general re- deeming agency in the city of New York will not be repeated or extended on the present occasion. The conviction is expreased, however, thatif the banks Were authorized to estabitsh an institution ef their own for that purpose, owmed, controlied and man- aged in their inierest, they would find it greatly to their profit to do so. Such an institution weuld also serve as the cnsto- Gian of the reserves kept in New York, thereby ex- empting them from the ris! incident to funds de- posited in the ordinary way and drawing interest, and would, perhaps, obviate the necessity of specific legislation Upon the subject of the payment of toter+ esta on deposits; while the benefit to the whele country, arising from @ fiscal agency so traly na- tional in ita character, reguiating the ourrency, the exchanges, and the bauking interests of the coun- try, beyond the control of any ring or chique—be- cause managed by ail for the benefit of ali—wouid be of the most substantial and enduring kind. Respectfully suvmitiea, AILAND R, HULBURD, Comptroller of the Currency. BOUrwe.t, Secretary of whe terest on deposits, Ron. Groncr S$, | Treasury. SETTLED AT LAST. Tho Vandeveer Will © Jersey Coart of Appe: Invalid. The celebrated Vandeveer will cass, which has occupied the attention of the courts of New Jer- se Decided in the Neve { is—The Will Declared sey for three years, was yesterday brouget to a close im the Court of Errors and Appeals ut ‘Trenton. The facts of this case ave becn fully publisaed in the Meaty. ‘the heariug @n appeal has occupied the week | in the Court of Errors, and the vote was en yes~ terduy on the question “Shall the decision of the Chaneclior be alirined that the will be admitted to probate!’ Judges Beate, Clements; Dalrymple, De- pue, Ogden, Vail, Vansycte aud Weodhull voted in the fe lh and Chancellor Zabriskie, Chief Justice ley, Judges Seoudder and Kennedy in the The Chancellor's decision was, there: fore, reverse, aud the wil declared invalids EEE