The New York Herald Newspaper, December 3, 1872, Page 5

—, oe THE NATIONAL FINANCES. Annual Report of the Secretary ; of the Treasury. Receipts for the Past Fiscal Year $374,106,867. REDEMPTION OF THE NATIONAL DEBT Estimates of Revenue and Expendi- ture for the Year 1873. OUR FOREIGN COMMERCE Necessity of Regaining the Maritime Ascendency in ‘the Orient. SPECIE PAYMENT NOT RECOMMENDED: inianb-tenlthaica—eseh Gost of Maintaining the Civil Ser- vice, the Army and Navy. Appropriations for Coast Life-Saving Stations, Apparatus and Marine Hospitals. ~ ‘TREASURY DEPARTMENT, Dec. 2, 1872. Sm—Whatever degree of success has attended Me administration of the Treasury Department during the year is due largely to the abitity and Qdelity of the officers and clerks of the several bureaus and divisions, There have been some exceptions. vo the general. good conduct of the working iorce, but the number of these will not be ought large when it is known that more than three thousand persons are employed in Washington, of whont nearly fourteen hundred are. constantly en- din handling coin, notes and money securi- ties of the government. Many of these persons are fair wages for the services rendered, but Bthers who fill places of great responsibility are wot by any means adequately compensated. Ofi- fers and clerks of known ability and established feputation are frequently drawn away by offers of better pay elsewhere, This competition will leave ‘the basiness of the department finally in the hands of the less valuable part of its officers. A sense of Justice loads me to recommend an increase Of salaries of the Assistant Secretaries of the Yreasury. Since my last annual report the business of negotiating two hundred Million of.five per cent bonds and the redemp- tion of two hundred million of six per cent five- twenty bonds has been completed, and the accounts have been settled by the accounting officers of the Sreasury. Further negotiations of five per cent bonds can now be made upon the basis of the former negotiation. I think it expedient as a means of giving additional value to the bonds authorized by the Funding act of July 14, 1870, and additional security to the owners, that registered bonds of every issue should be made convertible ‘tmto coupon bonds at the will of the holder, When this privilege is granted the desire to convert them hall cease. The moneys received and recovered ‘to the Treasury during the fiscal year ended Fune 30, 1872, were :— customs. 8 of public jnternal revenue. ax on national bi Repayment 01 8, fines, Consular, pi jiscollancous sources. “Total ordinary receipts... eremiun on sakes of cola. Total net receipts... tn "ereneuty 3 $18,228 received from ‘Total available cash...» The net expenditures by warrants during the game period were: -$374,106,867 ne 30, 1871, ‘nciatig’ available”. elvil expense $16,187, jen invercourse 1,839) jens. 61-128 itary. ii tons, river and harbor improvements and avserals.... PER SAS ae 35,872,187 Weschincty ang lopravomententeayy yards. 249,809 jouses and collec 958.3 taterost ou the public debts ..-s.c-s-- ‘7 8871899 Total, exclusive of pri the public debt.... mium on bonds p demption of the public debt. I net dishursemen| jance in Treasury Ji From the foregoing statement it appears that ‘the reduction of the principal of the debt during the fiscal year ended June 80, 1872, was $99,960,253, Fhe sources of this reduction are as follows:— let ordinary receipts during the year........$364,694,: Reg ordinary ex} eRateures, ‘nctedl lor iabereet ed on the publicdebt....... 270,559,095 Leaving a surplus revenue o! 4,194,534 “Add amount received trom preminm on sates _ of gold in excess of the premium paid bonds purchased... sus 2,454,370 the amount of th ah Balance nt the close of the year, as compared ‘with same at commencement of year........ _ 3,371,818 ‘This statement tre: incipal of the Vege debt by the monthly statement of the — ie debt, which includes the principal, interest uc and uapaid, and interest accrued to date not due, and deducts the cash in the Treasury os us- @ertaimed on the day of publication. The reduc- tion was $10,504,491. The source of this reduction 4s as follows :— jaction in principal account....... juction in unpaid interest accon! 103,290,956 irae ina seagee ees + 100,544,491 A- comparison of the reduction in the principal @ccount ag shown by the above tables discloses a @ifference of-$250 occasioned:by an error recently Giscovered, and which is tully explained in a note ‘on page 6 of the appendix to the report. On the Of the last table the statements show a reduc- ‘tion of the public debt from March 1, 1869, to the present time as follows:— larch 1, 1869 to Maroh 1, 1870. a eed ht tert to Maren 1 1872 «80 a8 are! larch 1, ue arch 1, 182 to. Novem ight months....... tone. « 067,237 The receipts during the tent fecal Fear were: File SPs futernal revenue on cireul on. payment of interest by Pacific railwa, F, patent and other fees. of government proper : gous source let ordinary frcetpts Premiwa. af iniee ot Balance in Heensaiy ‘Sue’, 1S ~ $1,014 veceived trom “unavailable” ee: ares during the game peri aa fonowss= e be For se eHancous expenses, Incind- Sig pul hallinen lighthouses, a1 $19,200,901 fndian: 3,087, or Bey ry Vr is arbor improvements al aa peat aii 'aid ag \ apriener 1p ‘ments at nay; rds , rest oD pee rit luding Pi ihe Hal. 96,196,008 ‘ ave pe ‘on public det $96,861,068 Hi For detredewption ot 18a, Balavec Bee oii Treasury Sopicmiber Bi, iid San the shree-auarters of the current —_- NEW YORK HERALD, TUESDAY, DECEMBER 3, 1872—TRIPLE SHEET. fiscal yea? it is estimated that the receipts will cial valne, as metal should be sed only for the be:— is mat ee eine Renee a Eee that the ex- penditures will be:— . Foreign intercourse M Naval éatablishment. Interest on the public’ debi. Total sc This will leave $44,800,000 surplus revenue aj pileable to the purchase or redemption of the pul ic debt, The amount required for this purpose under the Sinking Fund law for the year will be about 200,000, It is estimated that the receipts for the fiscal year ending June 30, 1874, will be :— From customs. ms Goneular, patent aud of of public propert: jecellaneous source: 000 based upon the ted since the acts of May and June, 1872, went into operation, but the im- rts have been large, and considerable sums have n obtained by internal revenue officers on ac- count of old taxes and claims, hence it will be wise to leave the source of revenues undisturbed for the’ present session, It is estimated that the expenditures for the same period will be: ‘or civil expenses * Foreign intercourse... Indians. Penstoi bt ay and harbor improvements and ar- Naval establishment, including vessels and mac. and improvements at navy Fics Miscellaneous civil, including public buildings, lighthouses and collecting the revenues..... Interest on the parle debs * rest op Pacitic Rail Sinking fund . Total...... 286,600,000 —leaving the estimated surplus revenue $33,700,000. ‘The estimates received from the several executive departments show that the following amounts will be required for the same period :— pent . pablic debt Interest on Pacific Rail Sinking fund Total... is The reduction in taxation since the close of the war 2 gatimated te Ye been :— in Internal revenu Nz By the act of July 13, 1856... By the act of Mareh : 40,000,000 By the act of Februaxy 8,°1808. 23,000,000 By the acts of March 31, 1368, ,000, 000 By the act of July 14, 1870. (55,000,000 By the act of June 6, 1872, 20,651,000 Total of internal revenue....... irae aly ‘$248, 651,000 In custo! ms— By the act of July 14, 1870... ose... ..eses By the acts of Miry Il, 1872; and June 6, i Total of customs.......... —a total reduction of $309,350,171. Since the institution of the sinking fund in March, 1869, and in accordance with the act of February 25, 1862, there has been purchased on this account, up to and including June 30, 1872, 99,397,600 in bonds of the various issues known a8 five-twenties, at a net cost m currency of $110,997,185, or an estimated cost in gold of $94,097,243, In addition to the urchages for the ‘sinking fund bonds have en purchased to the amount of $173,237,950, at a het cost in currency of | $195,008,288,_ or an estimated cost in gold of $163,376,054. The cost of these bonds, estimated in gold, has varied from 82,21 per 100 to 99.99 per 100, the most recent purchase being at the rate of 98.66 per 100. ‘The average cost in gold of the whole amount of the purchases up to and Beis the last day of Sep- tember was 94.64 per 100. In this connection I would call attention to the various tables accom- panying this report, which furnish elaborate details of the money operations and accounts of govern- ment. The condition of our carrying tr: foreign countries is always a subject of interest, and at the present moment it is one of solicitude. ‘The imports and exports of the United States, ex- cluding gold and silver, amounted: to $1,070,641,168 for the iy r ending June Law and of this vast trade only 2334 per cent wasin American ves- sels; tm the year 1860 nearly 71. per cent of our for- eign commerce was in American ships, but in 1864 it hed fallen to 46 per cent, in 1868 to 44 per cent and im. 1871 to less than 38 per cent. Tne earnings -of vessels engaged in the foreign carrying trade. probably exceed $100,000,000 a year, of which less than one-third is earned under ourown flag. The act of Congress allowing @ drawback on foreign articles used in the construction of American vessels bas given encouragement to shipbuilding, but I am of opinion that this measure is entirely inade- quate. When we consider that nearly three-fourths of the-foreign commerce of the country is under foreign flags it is Bo that there can be no con- siderable and speedy change unless the govern- meat shall act at once and in @ liberal and compre- hensive spirit. The rise in the price of iron and the advance in the wages of- labor in England during the past year tavor the government and the bes of the United States; but this advantage, ue to natural causes, ghouid not lead us to trust the future to the force of those causes, but should induce us-rather to act at once and with vigor. It m happen that we cannot regain the control of the direct trade between Europe and the United States, but there-is an im- mense ficld SPs occupied upon the Pacific Ocean and in the uth Atlantic, England controls the markets of the world by rolling the chan- nels of communication, and I am convinced that a wonderful.impetus will be given to the agricultural and manufacturing interests of the country by the increase of our commercial marine. Merchants in distant countries must purchase goods at points with which they have trequent and regular com- municati and ‘when such communication exists wil one country only the cost of merchandise becomes unimportant, as there are no means of comparison. Nor is there opportumity for the advantages of competition, lence a~great producing country can afford to establish and maintain iines of steamships upon the ocean, as the indirect benefits will much ex- ceed the coat. The details of our trade with for- eign countries, as represented by the returns made to the statistical bureaus, are also unsatisfactory. From these returns it spears that the imports of merchandise for the fiscal year ending June 5 1872, Were $626,595,077, and the exports, estimate: in gold, were $444,046,086, show! @ balance against the country of $182,548,001, This balance is in some a apparent rather than real. On the 30th of June, 1871, the value of ‘eed remain- ing in warehouse Was $68,324,659, while on the 30th of June, Cais it was $122,211,266, showing an ex- cess at the close of the ast fiscal year of $53,886,607. Deducting this excess we havé a balance based upon the actual consumption. of the country of $128, 662,384, From this a further reduction should be made of $66,133,845, the excess of exports over the imports of gold. After these deductions there still remains an adverse valance of $62,528,639, Adverse balance has been met probably. by freight on merchandise carried In American vessels, profits on exports made on account of American mer- chants and ship) lar the sale of bonds abroad and investments in the United States by inhabitants. of other countries, The experts of merchandise for the year 1872 were $13,208,033 less than for the year 1871. The exports of wheat, wheat flour, raw cot- ton, cotton manufactures, loner silver, firearms, manufactures of leather, filuminating oil, and beef, fell off $82,006,325; while there was a gain of $68,767,302 in the exports of corn, furs, hides, skins, bacon, hams, lard, leaf tobacco, manufac- tures of iron, wood, Jeather and many minor arti- cles. There was an increase of exports in every branch of manufactures except cotton, leather and firearms, The decrease of our exports in wheat and wheat flour was $12,000,000, raw cotton, $37,000,000; factured. cotton, $1,250,000; gold and silver, $11,600,000; firearms, $12,000,000; manu- factures of leather, Seooc luminating ee $3,500,000, and beef, $2,000,000, ‘The statistics o imports show an increase of $7,000,000 in coffee, $18,000,000 in sugar, nearly eaten in. tea, nearly , 526,410 beat + $00,699,171 le with $3,000,000 in tin Rit, more }17,000,000 in ‘Wool, 000,000 iron, $11 000 t reMnufsctares of iron, @5,006,000 a om in of cotton, $4,000,000 In manulactures of silk and 000,000 in manufactures of wool. These tustics are Dot presented as affording a basis for legislation, but rather becaure they are exceptional du character and not likely to be repeated, TUE UNITED STATRS MINTS. During the last P hon thorot examinations have been made at mint at Philadeiphia and of the branch Mints at San Francisco and Carson enc, apd also upon several. questions of s geacral questions of a gener: eharacte: connected with the Mint service, made by Dr. Linderman and Professor Torrey, and to be ae ie oa by H3 cea een ta ae Con- a8. From the: ippears that the ser- Vice is in @ satisfactory condition. In the last ten years the commercial value of silver has depre- clated about three per cent fp ee with goid,, and ia use as currency has been discontinued by Germany and some other countries, The finan- cial condition of the United States vented the co Mie. more than opinion that, upon grounds of public licy, no attempt should be made to introduce bus that the should be limited 40 commercial pur- Doses commercial uses exclusively for talli¢.pusrency ehould correspond + ite oommer- ‘The intrinsic value of @ me- —_——— ee -_——,-_" tokens redeemabie by the Toment at their national value. As the depreciation of sil- ver ia Jik: col it is impossible to issue goin redeemable ara without ultimate logs to e government; for when the difference becomes considerable holders will Esra the stiver for re- demption and leave it inthe hands of the govern- ment to be di of 81 uently at a loss. If the icy she be adopted of issuing silver coin le, but. whose intrinsic value should A correspond to gold, the time must come when the country would susie from the presence of a de- preciated silver currency not redeemable by the foverement nor currept in the channels of le. Tokens of base coin, except for small @enominations, are less convenient than paper, and are subject to many other serious objections. ‘The Feciisien: mace oye, ‘Treasury Department for the redemption oi mutilated paper prone lp much more than formerly, and I think it practicable through the Post Ofice Department to ake an arrangement by which the whole country sl ke ied with sh issues of fractional currency, erefore, in renewing the recommen- dations heretofore made for the passage of the Mint bill, | suggest such alterations ag will pro- hibit the coinage of silver for circulation in this | country, but that authority be given for the coin- of siiver dollar that shall be as valuable as the Mexican dollar and to be furnished at its actual cost, The Mexican dollar is used generally in trade with China, and is now sold at a premium of about eight per cent over the actual expense coining. As te production of silver is rapidly in- creasing, such a coini will at once furnish a market for the raw material and facilitate com- merce hetween the United States and China. THE NATIONAL BANK CURRENCY SHOULD BE RE- ED. It is no exaggeration to say that a necessity ex- ists for a new issue of national bank notes. ‘The reasons jor such issue were given in my last annual report. I take this occasion to call the attention of Congress to a communication made by me to the House of Representatives on the 22d day of March, 1872 (Ex. Doc, 283, XLIId Cong., Second Session), hich recommended the enactment of a law for the relief of the Treasurer from res} opsibllty. ore a ores Caer ty ents . D, rly cler! ce, aan Ate the Pa Phcton Teeter al crepancies im the public accounts amounting to $406, that the books of the department may be made,to cole form to the facts. vf DEPALCATIONS. Ap examination of the affairs of the office of the Assistant Treasurer at New York, made in nl ber and October last, disclosed a Gefblontion ja the Stamp Division, in charge of James J. Johnson, of $185,191 72, The report of the committee explains the course of proceeding by which Johnson was able to embezzle the amount of money. The report further represents that Mr. Hidhouse, the Assist- t ireagurer, cannot be charged properly with neglect of duty, and in this opinion f concur, he business of keeping and ooiing at 3 Was im- posea upon the several Assistant ‘Treasurers y virtue of the authority invested in the Secretary of the ‘Treasury in the sixth section of the acf of August 6, 1846. But, by the terms of that act, it -was not ‘tent for the Treasury Department to allow the Assistant. Treasurer at New York compensation for the labor and responsibility of the peemp Division, aithoug the commissions which would have been payable to him, at the rate allowed to private parties by the 161st. section of the act of 1864, amount to more, than five hondrea thousand dollars, ‘The circum- stances ofthis case are such a8 to justify me in re- commending the passage of a law by which Mr. Hillhouse shall be relicved from responsibility in the matter of the defalcation of Johnson, PUBLIC BUILDINGS. The report of the Supervising Architect of the ‘Treasury furnishes a concise statement of the cost and condition of the public ‘buildings im cha of this department. Large sums of money will be needed for the buildings already begun or au- thorized, and 1 Sompoctfally advise that pro- vision be made for thé erection of pavilion hos- pitals, and a building for tae accommodation of the Bureau ot Engraving and Printitig and the storage of the books and papers of this depart- ment, and that no new works be authorized at the present session of Congress. The business of the office of the EU Sale Architect of the Treasury is fully equal to the force employed, and the necessary appropriations are so large as to justify Congress in refusing all applications during the present session. The destruction of the bolld- ings on the easterly side of the new Post Office in Boston furnishes an opportunity that ought not to be lost for the purchase of the remainder of the square. *An act, approved June 18, 1872, ‘au- thorized and directed the Secretary of the ered to purchase a lot of ground in Philadelphia for the accommation of the new Post Ofice and United States Court, and to erect a building thereon, the cost of the whole not to exceed the sum of $1,500,000. Under this act, and following the usage of the depart- ment, I prpoin ee a commission of citizens of Philadelphia, who were authorized to receive pro- poe] for the sale to the government of a suitable lot of land. The report of the commission has been submitted to lepartment, irom whicn it sppcere that the lot thought to be most desirable, situated on the corner of Chestnut and Ninth streets, can be purchased ata cost of $925,333. It also appears that the cost of a sufficient quantity available would exceed $500,000, Accepting the conclusions of the commission as final in reference tothe cost of Ssubabieatliog I. have declined ~o proceed further without additional authority {som Congress, it being clear that it is impossible to procure land and erect @ building for the sum specified in the act. Similar circumstances have Prevents the purchase Of land for @ public build- ing at Cincinnati. ‘Tbe increase of books and pa- pers not in a or frequent use is #0 great as to seriously interfere with the business ef the de- partment. The annual accumulation requires 7,688 cubic feet of space for storage. All the available rooms in the building, including some that might be used for clerks’ desks, and portions of the put- lic halia, have been given up for the deposit of such books and papers, and the time has come when other provision should be made. I, therefore, recommend the erection of a@ brick fireproof building upon the public grounds south of the Treasury, sufficient for sto! and the ac- commodation of the Bureau of Engraving and Printing. The relief which these changes wouid afford is-essential for the proper transaction of the business at the ‘Treasury Department. COAST SURVEY, REVENUE SERVICE, &c. The operations of the Coast Survey, as well as those of the Lighthouse Board, appear to have been economically and efficiently managed. ‘The revenue marine consists of twenty-seven steam and six sailing vessels, carrying sixty-five guns and manned by 198 officers and 80 men. This ser- vice has constantly improved in eMciency and in* the economy of itg management since the Summer of 1869. At that time a commission was appointed for the general and professional examination of all the oilicers employed, and upon their report thirty-nine were discharged, and those who were approved were assigned to duty and given rank according to their merits. From that time to the present all vacancies in the service have been iilled after an examination, and by those jound to be best qualified, Atthe same time a commission was appointed for the entire revision of the service. ‘Iheir re- ort was submitted to Congress on the 26th da: lay, 1870, Ex. Doc. My Forty-firat Congress, session. The vessels then employed were rated at 9,208 tons. A reduction has already been effected of 667 tons, and the vessels now building ‘and authorized will work a further reduction of 1,232 tons, making an aggregate reduction of 1,889 tens. The cost of maintaining the revenue marine has been reduced from $1,293,661, in 1808, to $930,249 for the year ending June 30, 1872. Statistical tables, Brgparea {rom the returns, show that in the essen- al particulars of assistance rendered to vessels, seizures made, number of vessel examined and number of lives saved upon the ocean and lakes, the work periormed Pepa the last ryprors nearly twice as great as the average for the pre- ceding years. Under existing laws the officers and seamen of the revenue marine are entitled toa pension gor when they have been wounded or disabied in the line of duty and while co-operating with the navy during war, and then at the rate established by the act of 1814 When it ig considered that tnis service is constant, and that from the ist of November to the 1st of April in each year the vessels are required to cruise along the coast, and as near the land as possible within their respective districts, and not make @ port except for supplies or under the pressure of posi- tive necessity, it is clear that their services are not less hazardous than those in which the navy is engaged in time of peace. I therefore recommend that the navy Beason laws be made applicable to the officers and seamen of the revenue marine. The number of the commissioned officers is limited by law and each year adds to those who are dis- qeeliaes, by sickness or unfitted by age for active ‘uty. The hardships resulting from the dismissal of Officers under such circumstances is 80 great that I have declined to exercise a power which may, pethaps, in contemplati of Ta @ duty; but in view of the fact , that their compensation is small, and the nature of the service such as to bring disease and the in- firmities of pge upon them prematurely, J think It a plain duty for the government to provide a re- tired list, so that the active service may be sup- plied constantly with able and efficient men. LIFE-SAVING STATIONS. From the appropriation of $200,000, made April 20, 1871, “for more effectually securing life. and rey on the coasts of ‘New Jersey and Long sland,” seven of the old life-saving stations have been repaired and enlarged, and sixty-one new ones have been built, and new apparatus, sufficient a8 been procured for the station house has been erected and furnished at Nar- Tagansett the appropriation of $60,000 for the establishment of iife-saving sta- tions on the coasts of Cape Cod and Block Island, R. 1, nine houses have been erected on Vape Cod and one on Block Island, and oy ned be supplied with apparatus and ready for use by the 1st of Jan- uery next, An appropriation is required for the support of keepers and crews. ‘The Block Island stal and the station at Narragansett Pier should be annexed to the Long Island district. Twenty- been wrecked on the coasis of two vessels have Long Isiand and New Jersey since July, 1871, val- wed, with thelr cargoes, at aver five hun peat thou- And dollars, on which the loss was about two hun- dred thousand dollars. The officers and crews nom- bered 206 ornate, all of whom were saved, and mainly, it is beileved, Lhrongn the agency of the Hfe-saving stations. 1 respectfully recommend the extension of the system to the coast ip the vicinity of Cape Hatteras, . 9 MARINE DOSPITALS. 4 From the report of the Supervising Surgeon of of land to make the site of the present Post Ofice | Marine Hi is it api that branch of the tory condition. During fiscal year 19,156 patients were treated in the several hospitals of the country, at an average cost of about ninety-seven cents each per day, or a total expenditure of $396,263, total ex: penditure for the preceding ed of 082, Or an average cost per patient of $1 04. The increased receipts and diminished exposes * fiscal compared with the the Pew of districts in which relief was furnished greater than ever before, and the of medical officers at several of the principal perts increased, The financial im- were provement shown is due largely toa more careful scrutiny of the applicants to the relief, to the re- jection of those who were not entitled under the ieeemebecaeemcer airs ry mn ¢ r rel seamen belonging to foreign vessels to 75 centsa day, while the actual cost is nearly $1.. Authority should be given to the Secretary of the Treasury to fix the within certain limits, according to the expenses incurred at the hespitals where relief is ed. I renew the recommen- dation heretofore made for the erection of pa- vilion pose at New York, San Francisco and Pi The imerease of railway and eee bi in the vicinity ef the ospital at Pittsburg has rendered it unfit for fur- ther use.» rvising Surgeon recommends the erection in future of pavilion hospitals of wood, with the understanding that after ten or fifteen years’ use they are to be destroyed and new ones built in their stead. This recommendation Fe git cedar being at once economical for the gorerenest and vVantageous to the pa tien’ ‘The actiof February 28, 1871, to provide for the better soy of life on board vessels propelled in whole or by steam has not been tion @ cient ‘time to all respects, but the result in the main is satisfactory. The Supervising Inspector General, in his annual report, recommend several alterationg in the law, uot affecting its character materially. A bill will be prepared providing for seh alteragions a upon further consideration, mt CIAL POLICY OF THE COUNTRY. of, May, 1872, | transmitted to Con- titled “A bill to amend and consoli- LD ie measure—Executive Document y-second Congress, second session. T respectinlly ask the attention of Congress to the bill and wae eee for its passage. The time hag come wi le attention of the eos ig turned naturally to the future financial policy of the coun- try. at Bed must rest upon the past and the present. war caused three great changes in business and financial affairs that have re- ceived the careful consideration of the Ameri- can people, First, the country was compelled to impose heavy customs duties upon merchan- dise, ana thus, without general observa- tion, and without argument upon the prin- ciples “involved, the nation entered upon a broad -system of proteetion, Second, the government issued Treasury notes for neral circulation, as currency, and pro- ibited banks of issue State authority. Third, @ system of national banks was estal lished, “and. thelr circulation protected by the national credit. The wisdom of the measures, speaking generally, has been established, and, gubject to such changes.as the changing con- dition and opintons of the country and people may demand, they will remain @ part of our public policy until the financial consequences of the war disappear, The weight of the national debt haa been so great that for more than ten years there has been no oppor- tunity for the practical discussion of the doctrines of, protection and free trade, and in that long riod of an unchanged protective policy imeident to the burdens of the war, the Nation has advanced rapidly and safely in the development of ‘its natural resources. . Antici- pating the condition of peace, we may also antici- pate a general reduction in the percentage of customs duties. The reduction, however, should not be measured poral by the wants of the Treas- ury, but regard should be had also to the condition of the various branches of industry in which the people are engaged. In the sence of the fact that the leading pur- suits of the country are stronger than ever be- fore in the possession of adequate capital and @ supply, of intelligent laborers, there may be @ moderate reduction from time to tme in the rate of duties as the diminishing expenses of the government shall permit, with- out either alarming capital or injuring labor. For the purposes of government the principles of political pgpooes are national and . not cos- mopolitan. A nation that can roduce a given article at less cost than it can be roduced elsewhere may wisely — accept e trade in it; but a nation having natural for its production, sivaneenee yet destitute of skill in the incident art or trade, must wait for the opportunity that sometimes comes from the calamity of war or secure a more economical and @ more constant support in the licy of the government. If average natura) facilities exist,-the period of necessary ion is @ short one compared with the rotecti fetime of @ nation, while the advantages gpined in ‘uever be wholly lost; but if reason- } f ties do net exist, then a ym} ie of duties for propection is @ present and Yiture q burden without juate compensation. So varied and neh, however, are the. natural resources of the United States that we elther are or miy soon be im’ succe: competition with the older and more experienced countries of the world in the ae of the chief articles of persona! ne- cessity, comfort and luxury, and of the ma- chinery by which these articles are produced or obtained. Heryin 18 @ sufficient justification for the existing protective system, and rite centinuance during the transition period. Nor ia the Droayest of ultimate. successfal com- tition ith other countries disturbed y the circumstance that the wages of labor are higher in this country than in those, li, ten years since, it was the thought of any that the only way to a successful contest with Europe was in the reduction of the fo the European standard, that thought has disappeared probably in penance of the fact that high wages on this side of the Atlantic have stimulated emigration until there is @ near appreach to equality in the cost of la- bor, and of the coexisting fact that the addition thus made to the number of laborers has only aided in the development of our resources with- out yielding in any quarter an excess of products or retarding in any degree the prosperity of the lavoring population. his prosperity on their art iv associated with a higher and constantly improving intellectual and social culture and condition. It being given that an intelligent person has ail the special knowledge of an art or trade possessed by the most experienced and best-trained operative, who, outside of this special training amd experience is an ignorant person, and equal advantages of capital and ma- chinery being given also, the intelligent person proceeds to improve and simplify methods of production to such an extent that an addit’on to his wages of even 100 bsp ceut represents but a small part of the advantage gained, i the special training and knowledge of the ignorant man ig. the basis of the improvements made. This truth, considered first with reference to a single American laborer, and then multiplied many hundred thousand times, represents the advantage of America over Europe and Asia in the contest for final peaceful supremacy in the affairs of the world. Thus is America solving the industrial problem of the ages by exacting cheap production from expensive labor. ‘The reason for these remarks may be tound in the opinion I entertain that the tarif system of the country has contributed largely to the general prosperity, and that such general and-continued Repoaniy, is the only basis on which even a wise nancial policy can rest. THE NATIONAL BANKS. In discussing the other changes caused by the war the issue of United States notes and of notes by the national banks should be considered together. Indeed, they are necessary parts of our financial system, and neither can be sub- State bank oie tom of private banks, while of an equal amount of United States notes as currency would be productive of serious evila and losses, First, the national banks hold neari: four hundred million United States bonds, whic’ otherwise would be thrown mm the market, ab- sorbing domestic capital, or, if purchased abroad, adding by the amount of inverest to the annual balances against usin our account current with other countries. Second, one office of a bank is to regate the capital .of small posses- sors, and thereby to furnish means in ail of im- portant commercial and financial undertakings, not only at the centres but in the remote and newly settled parts of the country. Third, the national banks are used as aids to the gov- ernment, which otherwise would require a je Increase in the number of the designated deposit- aries and asprsone imerease of the public ex- penses without the least appreciable surantage, urthiy, they facilitate exchange between differ- ent sections of the country, thus diminishing the cost of commercial transactions. Fifthly, they are generally less. di than private parties con- trolling equal capital todemand exorbitant rates of interest; but it does not follow from these views, nor would it follow from those of @ similar char- acter which might be presented, that the system is perfect; nor does it follow that the issue of notes directly by the government should be surrendered, and the business of furnishing a currency yielded to the national ka. circulation of each bank is fixed arbitrarily by @ rule of law. Ag- te circulation is therefore a fixed sum, Consequently there is practically no -re- serve to meet the increased demand for money occasioned extraordinary events at home or Ce and arist riodically with the incoming of the harvest. é old State bank system is sometimes commended for the oe termed elasticity, but.that quality, as found in.that. Teer alan Sbyane of pemet * of demand for a ere was p' df iy no timit to the ag 4 if aw out The in- fea of an Saraucetn pity census por mand for coin tions, & ‘consequent from’ the banks to meet balances abroad, @ simultaneous reduction of the ir currency, {0 Oblige their patrons by Joous abd agvomimodar the substituti exp , ence of Europe tends to show that the ability Hons, it can never be wise to allow banks and ee. who have pecuniary interests at stake to ‘¢ or diminish the volume of currency in the country at their pleasure, Nordol find the con- dition of @ Jaw or rule on which we can safely rely. Upon icws I form the conclusion that the circulation of the banks should be fixed Volume of’ paper in’ clreubtion, ‘aia Simits circulation, within 8 established by law, should remaim in the Treasury Department. . acy i. Dp: A degree on the volume s partment capno' properly if @ Hmit ts fixed and the power to raise he circulation above or reduce it below that limit is denied. A rule of this nature would compel the Receehary, to accumulate a large currency balance, and to hold be’ as otherwise the oredit the government in meeting the ordinary claims on it would be at the mercy of every serious business and political revolution in the Snited States or Europe. Especially would this be trae, now that our ordinary currency ex- penditures are greatly in excess of our currency revenue, Secondly, there is a necessity every Autumn for moving the crops without deiay from the South and West to the seaboard, that they may be in hand for export and consumption as wanted. is work should be done in the main before. the lakes, rivers and canals are closed, and yet it cannot be done without the use of large amounts of currency. In the Summer months funds accumulate at the centres, but the renewal of business in August and Sep- tember gives employment for sums, and aoe little oe nothing for forward- ing the crops October and November. Nor mania this didiculty be obviated’ by a per- manent increase or @ permanent reduction of the volume of currency. The diMeulty is due to the natural order of things, and increases with the pre rity of the country, as shown in the abundance of its harvests, The crops cannot be Moved generally by the ald of bank balances, checks and letters of credit, but only by bank notes and United States notes paid at once to the pro- ducers. This money finds its way speedily into the channels of trade and to the commercial. centres, but if it be allowed to remain for general use alter the reason for its issue has ceased the value of curfetey wo be increased permanently, and the year following the same process would be re- peated, with the same results, and thus would the country depart more and more widely from the policy of Zepumption. The problem is to find a way of increasing the currency moving the crops, and diminishing it at once when that work is done. ‘This is a necessary work, and inasmuch ag it cannot be confined to the banks, whare but in the Treasury Department can the power be reposed? While the currency revenue was in excess of the currency expenses. it. was practical to accumulate large balances in the Treasury during the Summer, to be used, if nésessary, in the purchase of the bonds in the Autumn, thereby Meeting the usttal demand for currency at that Season of the year. Hereafter such accumulations must be made by the sale of gold, aud the sale of gold in large quantities during the Summer, when business is the least active, may not always be consistent with the best interests of the country. Reliance cannot, therefore, be placed upon the ability of the Treasury to accumulate a currency balance each year for the purpose indicated. The argument in favor of a paper currency composed in Fore of United States notes and in part of national ank notes is strengthened by the aid which may thus be furnished in resuming and maintaining specie payments. In the view that 1 am now to take, lexclude the idea that the government will ever abantlon the issue of national bank notes and undertake the issue of United States notes in their place. The result of such a paiiey, may be foreseen, The people, deprived of the facilities for business afforded by banks, would scek relief through State institutions, and without much delay Congress would concede to them the right to issue notes for circulation, ‘This concession would be lowed by a surrender by the general government of all control over the paper circulation of the country. The true policy will be found in continu- ing the national banking system,’ without, how- ever, yielding to the claim for a material in- crease of its ixsues in proportion to the volume of paper in circulation. There are two effectual and certain ways of placing the country in a con- dition when specie and paper will possess the same commercial valine. By. diminishing the amount of paper in circulation the dilference be- tween the commercial value of paper and coin will diminish, and by pursuing Coa cP the ditference will disappear altogether, All legislation limited in its operation to the paper issues of the barks and of the government, whether bearing in- terest or not, and which, in {ts effects, shall tend to diminish the market value of coin, will be found, upon analysis, to contain a plan for con- tracting the volume of paper currency; and all legislation go limited, which does not contain such @ plan, will prove ineffectual. Accepting this propo- sition, and believing that the country is not pre- pared to sustain the policy of contraction, it onl remains for me to consider the means by whic the value of our currency be improved. The basia of a policy of improvement must be found in a sturdy refusal to add to the paper in circulation until itis of the same value substan- tially as coin, This being accepted as the settled uurpose of the country there can be no permanent Increase of difference between pares and coin, and an opportunity will be given for the influence of natural causes, tending, upon the whole, to a bet- ter financial condition. _We may count first among these the increase of population sad bution . ever -Rew.. oh = DM ness and labor; mocondiye in the South especially, the number of persons having propert; and using and holding money will increase ; next we may anticipate a more general use of paper in Texas and the Pacific States, by which, practically, for the rest of the opniey, She volume of paper, will be diminished and tl quantity of coin increased—two facte tending to produce an equality of value, The influence of these natu causes will be counteracted in some degree by the increasing facili! for the transfer of money from one point to another and i the greater use of bank checks and certificates of deposit. The rapid transit of merchandise, in bringing the pealod of ite consumption nearer to the time of its production, is an agency of a simi- lar sort, giving to these views their full weight. I am prepared to say that the ex- perience of the last three years coincides- with tne best judgment I can form, and warrants the opinion that, under the influence of existing natural causes, our financial condition will gradu- ally improve. During the last fiscal year there were several circumstances of unusual character tending to counteract the natural course of affairs. Our exports of cotton fell off $37,000,000, and there were excessive imports of wool, tea, coffee and sugar. The stock of wool in warehouse on the 80th of June was suMicient for six months’ con- sumption, of sugar for four and a _ half months, of coffee for five’ months and of tea for twelve months. In the ordinary course 0! trade the importation of these articies will be small during the current year, with a consequent favorable effect upon the balance between thus and other countries. ‘This anticipation of the wants of the country in connection with the decrease of our exports augmented the balance of trade, cre- ated an active demand for coin and advanced the price. Notwithstanding these adverse in- fluences gold has averaged, substantially, the same piemium from January1 to November1 of thé present year as for the corresponding period of 187). Not doubting that natural causes will, in time, produce the result sought, it is yet advisable tobring the power of the government in aid of the movement as far as practicable. The revival of our foreign commerce is one in- strumentality, and perhaps the most efficient one of all. If the annual earnings of American ves- sels were $50,000,000, instead of $30,000,000, thé difference in the amount of exchange available abroad would meet a large part of the ad- verse balance in ordinary years, The eri- of a country to maintain specie payments is due largely to the condition of its foreign trade. Next baben' gp od which increases or improves the channels of transportation between the sea- board and the cotton and growing regions of the country or lessens the cost of freights ad something to our capacity to compete successful in the markets of the world, Finally, those meas sures which encourage American manufactures, especially of iron, w nd cotton, and discourage the importation of like spreaecte,. affect favorabl, the balance of trade, and help us toward the en we seek. ja statement in these parte is @ gen- eral statement @ policy that, in my opinion, will aid the conntry in reaching a condition when it will be practicable to resume and maintain specie payments. Anticipatin, day, I anticipate also that the but resumption will rest upon the government, There are now more than 1,900 banks in the country, and I cannot ine a condition of things 80 favorable for a period of years ag to enable them at all times to redeem their notes in specte only. that len of Without proceeding to the discussion of the sul ject in detail, I think that all will have been gained that is of value when the Treasury shall be prepared to pay the demand notes ot the government in coin, and the banks shall be prepared to pay their notes either in coin or in legal tender notes, and then our good fortune will pear in this, that our paper currency is clearly not exclusively of national bank notes nor excla- sively of United States notes. GEORGE 8. BOUTWELL, Secretary of the Treasury, Hon. James G. Bains, Speaker of the House of Representatives, OAD FROM WILLIAM B. TRAVERS, New York, Dec. 2, 1872. To THE EDITOR OF THE nERALD:— A few days ago | sent to your paper for publica- tion a note with regard to my pending interest in the recent corner by Jay Gould and his iriends of Northwest stock. Istated the whole truth, as I then supposed, in regard to my liabilities, and closed my Northwest stock account, growing out Of this corner, at a loss of $23,134 88, Including my oma Account, joint accounts and guarantees for expires on ok Ee ee | —— THE LEE HOMICIDE. —ardnesdiemnenaee Coroner Keenan Investigates-Know-. Nothing Witmesses—The Assassin Un-~ discovered. Again yesterday morning the Coroners’ office was besieged with Seventh ward roughs, including many members of the notorious Rutgers Club, to witness the proceedings before Coroner Keenan im the case of William H. Lee, alias Fenton, aliag Baker, the ex-State Prison convict, who was fatally stabbed in the abdomen during a drunken quarrel in Cherry street, near Pelham, early on the morning of the 24th day of November, as previously fully re- ported in the HeRaLp. None of the witnesses called seemed to know auything about the stab bing, pretending not to have seenit. Below will be found a brief synopsis of the evidence elicited :— William Coffey, of 228 Cherry street, waa first! called to the stand, and testified that on the night of the 23d ultimo Patrick Delany, John Welch and Patrick Golden were in his place, talking about the target company of the Rutgers Musketeers; Welch sald he did not think the witness would be invited; Lee told Welch he was @ liar, and that he could whip him or. any man on the block; Lee then called Welch outside, but he would not go; Welch aubse- guenciy Went out, the witness following, to make riends between Lee and Welch; Golden, Welch and Delany went towards nome; they had been . fone out but a few minutes, when the witness eard Lee had been stabbed; there was no trouble between deceased and Delany; none of them were under the influence of liquor, except Lee. ‘Abbie. Cottey, daughter of the previous witness, deposed that she heard Lee ask Welch out to fight, but he refused and remained in the room for nearly anhour, when he left with Jack Radley and De- lany; Paget no quarrel with deceased. Patrick iden, of 148 Cherry street, deposed that he was in Coffey’s place, and while tnere Welch came in, and he and & man known as “Billy” talked about tickets for the Rutgers Club; Lee then became very profine and abusive; Coifey opened the door and told Lee to go away; half an hour later the witn Delany aud Weich, hearing a noise in the street, went out, when Welch was struck by some one; Delany then interfered and Was algo struck; witness had @six-barrelled re- volver, but did not discharge it; carried the pistol lor protection; saw uo one have a knife and did not hear of the stabbing till after his arrest while on the way home. Margaret Burns, of 227 pie street, deposed that at about twelve o'clock, on the 23d ultimo, she heard a dispute in the street, and directly some one cried out, “Murder! watch!” saw a man éall; heard some one cry out, “I am stabbed!” ‘Thomas Radley was called, but knew nothing of the occurrence; assisted to take Lee to the drug store after the stabbing. Kadley seemed much ag- grieved that he should have been arrested while aiding a dying man. On leaving the stand the wit- hess became somewhat impertinent, and re- marked, “If you work hard you can find the mur- derer,”’ to which the Coroner repled, “Do you know who committed the murder?” Radiey said, “No,” but said it was too bad that he should be ar- rested and have his name published in the news- pers. li Patrick Delany, the accused, was then called to the stand to make his statement, previous to which Coroner Herrman informed him he need say nothing tending to criminate himself, He replied that he was not guilty; on the night in question he interfered to separate parties who were fight- Ing in the street when he was assaulted and knocked down; he had no knife and cut ne one that night; don’t know who stabbed Lee, Detective Jarbbe, of the Seveuth precinct, testi- fled that he Knew Lee and Donovan; both were sad, bad characters, Lee having been out of State Prison batafew weeks; Delany is an in- dustrious and peaceable man; should not like to believe what he said as a general thing. Deputy Coroner Cushman read the post-mortem: examination made on the body, aiter which Coro- ner Herrman read to the jury the ante-mortem statements of both Lee and Donovan, after which the case was submitted to the jury, who found the following - VERDICT. “That William H. Lee, alias Fenton, alias Baker, came to his death from peritonitis, the result of a stab wound of the abdomen, inflicted with a knife or Other sharp instrament, at the hand or hands of some person or persons to us unkuown, on the morning of the 24th of November, 1872.” On the finding of the jury Coroner Herrman dis- charged all the witnesses, but held Delany ou the complaint of homus Donovan, who is: now lying in a very critical condition from the effects of & stab wound received at the same time Lee was slaughtered. Delany was released on giving $2,000 bonds to await the death or recovery of Donovan, REAL ESTATE MATTERS, Dull Day on the Exchange Yesterday= Sale of Central Park Lots—The Herricks Estate Under the Hammer To-Day—A -Weluabie Water Front iu Harlem fon Sale—How Property Will Be Effected by the Hell Gate Improvements. , Whether it was the weather or some othef agency, the transactions of real estate yesterday were very small indeed. The only business done at the Exchange Salesroom were two minor ref eree sales by order in the Supreme Court, Mailer, Wilkins & Co., under direction of T. M. Adams, referee, dispored of & house and lot, north side of 109th street, 75 feet west of First avenue, 25x100.11 feet, for $250 over and above # mort- gage of $7,000 and interest from. July 1, 1872, Fhe purchaser was T. C. Betts, the plaintitr, The other sale was effected by James M. Miller, and consisted of a house and lot 388 Tenth street, between avenues B and (, 25x02.3, by order of T. H. Landon, referee, for $10,009, to Jeremiah Pang- born. Anumber of private sales have been effected, but the entire arrangements not being perfect, it is impolitic to publish the same. Mr. William H, Ray- nor reports the sale of three lots on Filty-eighth street, between Fifth and Sixth avenues, 395 fect east of Sixth avenue, cach 25x100.5 feet, lor $26,000 alot. A number of important sales will be held to-day at the Real Estate Exchange. among which may be noted one by E. H. Ludlow & Co., of the Herrick estate, comprising twenty acres of land and im- provements located between the Southern Boule- vard and Bronx River, in the town of West Farms, ‘This property has been laid out in lots and villa plots. The prices realized from this land wili ine great measure regulate Westchester property. Another sale Ra will be twelve lots, 25x98.9, on West Thirty-ninth street, 100 feet east of Elev. enth avenue; also four lots on the east side of Eleventh avenue, 99,9x100 feet, by Muller, Wilkins & Co., by order of A. W. Nicholl, trustee. ‘Ihe same firm will sell, at twelve o’clock, a four story high stoop Nova Scotia stone front house, on the south side of Twentieth street, No. 26, opposite Gramercy Park, 30x103 feet; also brick stable and lot on Nineteenth street, lot 33x75 feet. Messrs. Anthony J, Bieecker, Son & Co,, No. 77 Cedar street, have just received a fine piece of water front property, which they offer for sale on the usual terms. This property is located on 105th street, avenue A and Harlem River, Altogether there are sixteen lots, besides the valuavie water rights, The “water rights” include the privilege to col- lect whariage, crauage and dockage on the bulk- head line forever. There is very ittle property of this kind offered for sale, especially on the East River so far up town. ‘The future of Harlem water fionts is des- tined to become extremely brilliant. The immense undertaking of General John Newton, of the United co in fomacring the Hell Gate obstruc- tions, by which vessels of the largest draught may gain the ocean with a saving of forty miles and up- wards, cannot be other than highly beneficial to the lots in the vicinity of this new outlet. Our shipping will, as a matter of course, be compelled to seek berths further up town, in order to save towage and time, and the railroads that bring Western produce through the centre of New York State cannot do otherwise thau erect elevators as near the shipping as possible. So far property in the vicinity of the Hell Gate improvements has been held’ on to very tightly for the justly-antictpated rise, and the above-meu- tioned ‘lots are the first that have come into the market, the owner thereof having more real estate than he cares to carry during the coming season. Axnumber of lots on the Dyckman estate, Wash- ington Heights, were offered for sale yesterday, at greatly advanced prices, and the transser will be closed within a very few days. ART SALE. The sale of the Derby-Evrard coliection will be begun this evening, end if we may judge from tha interest already maniefsted in these paintings, the’ sale will be one of the most im it that has taken place in America, Since ite collec- tion was threwn on the market the desire of the ublic to parchase works of merit seems to have Revelope to an extraordinary degree, Each suc- ceeaing sale seems to increase in Value, both as to a] Cn Og merit of the works and to value of e Whole. ‘The most prominent art petrons of the city wilt be gathered to-night at Clinton Hall, and as the sale will’continue for five nights we may look fer Sa ipotontn 08 enthusiasm until it reacnes fever e FATALLY BURNED IN WALL STREET. On Saturday last Charlotte Green, a colored girl, twelve years of age, whose parents live on. the top floor of 88 Wall strect, was fearfully burned by her Ams taking fire from a hot stove. Being time wo stairs witty ees and bi tay A help.. The fre was pat out and Dr. Harrington, of 119 White tree etled atvend her, wulen he did till Coroner Young wad