The New York Herald Newspaper, December 8, 1874, Page 7

. 3293, to $272, 7 THE FINANCES. Report of the Secretary of the Treasury. How TO RESUME. The Question of the Refunding of the Public Debt. OUR FOREIGN TRADE. The Customs, the Internal Revenue and the Cotton Claims. ‘The Secretary of the Treasury in his report, ‘which is quite a lengthy document, states that uring the fiscal year ending June 30 the total net receipts, exclusive of loans, were $280,478, 756, against a total ordinary expenditure of $287,133,873, leaving @ surplus revenue of $2,844,882. The total ordinary receipts were $284,441,090, the premium on sales of coin being @iven at $5,037,665, The following were the total eceipts and expenditures :— RECEIPTS, 163,103, 833 102,409,754 1,852, 428 7,030,088 Chstoms Anos ponnitics, ke. 651,271 Labor, d e, storage, &c. ra! Sales of Indian trust lands. ‘ees—Consular, letters pate ees. . Profits on coinage, &c. Tax on seal skins. iscellancous source: ‘otal ordinary receip’ Premium on sales of co! Total net receipts, exclusive of loai Payment by the British govern- ment of the award of the trib- &c., over redemption. 17,207,475 : sh $82,707,475 Total net receipts... ore we ney ee. GS22,186,231 ‘Balance in Treasury June 30, 1873. .$131,192,028 Amount since received trom late depositary, Cincinnati, Otic. 1,088 Total... $131, 193,067 Deduct unavailable bs depositaries carried to their de- bits on books of the Register, and to the creult of the United States ‘Treasurer........ Total avaliable cash...... EXPENDI The net expenditures by warrants duricg the same period were: — Civil expenses. + $17,627,115, 1,508, 064 oreign interc 1.508, 'enaions, 1,038, ilitary establishment, including ‘fortificas tions, river aud harbor improvements and PRPMAMANR Shela t6s otis lu lsn¥ , 42,313,927 Naval establishment, including vessels’ and Machinery and improvements at navy yards $0,032,587 Miscellaneous. civil, including public build- Ings, lighthouses, and collecting the revenue _ 50,506,414 Interest ou the public debt...........6 107,119,815 Tota) net ordinary expenditures,, exclusive of the public débt.. + $285,738,800 Premium on bonds purchased. 1,395,073 Total..... i ancl 237, 133,873 count... 15,500,020 Total net disbursements. $302,633, 873 jalance in lreasury June 80, 18 Rares Total -$453,365,53 Mt_will eg hy a he a revenues for the (isca! year were....... + $289,478,756 And the ordinary expenses... + 287,133,873 Leaving a surblus revenue of............s0006 82 344,882 The total net ordinary receipts during the first quarter of the current fiscal year were $80,884,285, making the ‘total available” (includipg $5,247,068 receipts trom certificates of deposits of legal tenders and coin certificates in excess of redemptions, and $150,731,094 balance inthe Treasury June 30, 1874) $236,863,048, The total ordinary expeaditures dur- ing the same period were $85,313,489. For the re- maining three quarters it is estimated that the re- ceipts will be $203,434,000, and the expenditures $190,002,000, the largest items being $28,500,000 for the military establishment, $17,000,000 for the Daval establishment, $21,442,400 for pensions, $70,000,000 for interest on the publicdebt ana $48,060,000 for “civil miscellaneous,” including public buildings, It is expected that the Fevenues for the current fiscal year will amount to $284,318,285 and that the ordinary expenses will be $276,315,489, which “will jieave @ surplus revenue of $9,002,796 to be applied to tne sinking fund. The estimates are based on the assum ption that Con- gress will not increase the expe nditures by de- ciencies in other appropriations. ‘The sum of $31,096,545 will be required under the law for this fund, and, therefore, unless the revenues shall in- crease beyond the amount anticipated, there will be a deficiency in the sinking fund account for this year of $22,093,748. It is estimatea that the receipts for the fiscal year ending June 30, 1676, will amount to 000, and the total ordinary expenditures If these estimates of the revenues and expendi- %ures shall prove to be approximately correct, there will be a surplus of revenue of about $20,222,000, The amount necessary for the sinking Jund js not included in the above estimates of ex- enditures, and to provide for it the sum of B5p 140,014 will be required. Tne surplus revenues which can be applied to this fund ($20,220,000) ‘will be insufficient to the extent of $11,920,914, and there will theretore be a deficiency of that amount. The estimates received from the several execu- tive departments are as follows :— Legislative establishinent. $2,963,342 26,209, 459 Postal service 9,914, 373 Miscellaneou + 1a's91 169 Yermanent appropriations. » 146,673,551 TotAl......seesee ve +$310,080,769 REDUCTION OF THE PUBLIC DEBT. During the fiscal year the public debt was re- duced by the sum of $5,762,447, as Will appear by ‘the following statement: rincipal of the debt July 1, 1873...... woe e822 482,993 terest due and unpaid, anJ accrued interest to date... Total debt...........00+-+ ‘Less cash in the Treasury. Debt, less cash in the Treasury. Principal of the debt July 1, 1874. Amverest due and unpaid, atia accri to dat $2,261,600, 468 ‘ued interest Total debt. ‘Less cash in Debt, less cash in the Treasury. $2,139,897,851 Bhowthg a decrease during the year, ae above stated, of. a see BTO2M47 $2,344,882 ‘This decrease is represented by the excess of receipts ever expenditure: ‘The interest due and unpai Jess than June 3u, 1373, by 8,417,665 Total... sseees ” + $5,762,447 By the monthly statement of the public debt issued June 30, 1874, the reduction of the debt was e@bown to be $4,730,472 41, this and the preceding statement is explained by the /act tha: the monthly debt statement is made ap at the close of business on the day of its date, and embraces only the moneys oficiallr reported 40 the department at the time of its issue, whereas the foregoing annual statement of recetpts and expenditures includes revenues which were de- posited at the diferent places of deposit through- ont the country within the period covered by the accounts and unascertained at the time of the issue Of the monthly statement, The books from which the annus) statement of receipts and ex- penditures 18 prepared are usually kept open for period of forty- days, 8o as to inelude at the date of closing the accounts all the revenues which may have been de, ted within the year a ts. The difference arises fr [. ference Of dates at which they were Tae op. and by comparison of them as regards the casn in the easury at the commencement and close of the last fiscal year, it will be seen that by the an- Dua) statement of receipts and expendittires there ‘was a gain of $1,031,976, representing revenues in excess of those known at the time of preparing the monthly statemen hich, added to it or de- ducted trom vbe annual si ment of receipts and expenditures, will show that no difference exista except in the manner of their preparation. ‘The Secretary thus speaks of the refunding of the febt:—On aapuming charge of this depart. The difference between ‘vy the Secretary inviting proposals, ment, Jane 4%, 1874, the Secretary found the bal- @nce of the five per cent loan authorized by the gets of July 14, 1870, and January 20, 1871, then an- issued, to be $178,545,300, During the month of June proposals were received from seve- ral parties desiring to negotiate these but they were not deemed satis- factory, and were consequently déclined. On the 2d day of July a circular inened sponse thereto vids from Various parties at home and abroad were Foeeves, the aggregate amount of which was $75,933,550, Of this amount $20,933,550 comprised the domestic bids, and eacoeie the joint prebosst of Messrs, N. M. & Sons, of London, and Messrs. J. & W. Seligman & Co,, of New York. The domestic bids at par and above, which were accepted by the department, aaETennTed $10,113,560, and those at jess than par, which were rejected, amounted to $10,820,000, The proposal for $55,000,000 excluded the accept- ance of ail other bids, and provided shat the par- tes should purchase $10,000,000 on or before August 1, 1874, and the remaining $45,000,000 at their pleasure, in several successive instalments, prior to February 1, 1875; also that they should have the option of the entire balance of the five per cent loan, $122,688,550, until the expiration of six months from January 381, 1875, and that the Secretary should keep an agent in London to de- liver new fives and receive payment therefor. This proposition was modified, and on the 28th day of July a contract was entered into between the Secretary and Messrs. Augus® Belmont & Co., of New York, on behalf of Messrs. N. M. schild d& Sons, of London, England, and assoctates, and Messrs. J. & W. Seligman & Oo., of New York, for ‘themselves and associates, for the negotiation of $45,000,000 of the five per cent bonds, the contract- ing parties having deposited with the United States Treasury two per cent of the amount sub- scribed tor a8 @ guarantee jor the fulfilment of their agreement. The conditions of the contract are substantisily as follows:—The contracting arties to have the option of the balance of the joan, viz. :—$122,688,560, unti! January 81, 1875; to be allowed one-quarter of one per cent commis- gion upon the amount taken, they agreeing to aub- scribe for $15,000,000 of the belore-mentioned amount—$45,000,000—on the Ist day of Auguss, 1874, and w subscribe for the remaining amount $30,000,000, at their pleasure, in amounts of not tess than $6,000,000 ech, prior to the élstday of January, 1875, The contract also allows the parties the exclusive right to subscribe for the remainder or any portion of the five per cent bonas authorized by the acts of Congress afore- said, by giving notice thereof to the Secretary of the Treasury prior to January 31, 1875. The agreement, on the part of the Secretary of the ‘Treasury, with the parties before mentioned, is to issue calls of even dates with their: subscriptions for the redemption of an equivalent amount of six per cent five-twenty bonds, as provided by the act of July 14, 1870, The subscribers agree to pay tor said ‘tive per cent bonds par and interest accrued to the date of maturity of each call, in gold coin, United States coin coupons, or any of the six per cent five-twenty bonds called for redemption; they also agree to defray all expenses incurred in sending bonds to London, upon their request, and in transmitting bonds, coin, United States cou- pone or gold coin to the Treasury Department at ‘fashington, D, 0. On account of the subscriptions of Messrs. Roths- child and Seligman, and thelr associates, and those of home subscribers, calls for six per cent five-twenty bonds of the loan of February 25, 1862, have been made as follows:— The excess of subscriptions over calls—vim, $113,550—has been provided for by uncalled bonds which have been received by tne department in payment for that amount. The larger portion of the bonds subscribed for nag thus far been nego- tiated in Europe, where exchanges are still being made, He thus disserts on the RESUMPTION OF SPECIE PAYMENT, So much has been spoken and written within the last decade, and especially at the last session of Congress, on the financial questions relating to and growing out of our currency system, that further extended discussion of the subject at this time would scarcely seem to be necessary. The opinions entertained ana expressed by pudite men and communities of people, as well as the sense of Congress as heretolore indicated by the votes of the two houses, must be accepted as one of the factors of the financial problem, Nevertheless, the great and paramount importance of arriving at an ultimate solution of the matter, and of re- storia to the government and the people a sound and stable currency, induces the Secretary to bring the subject again to the attention of Con- gress, aNd to ask that decisive steps be pow taken by the law making power for return to a specie basis. To attempt an ¢numeration of the com- plicated mischiefs which flow irom an unstable or Inconvertable currency would carry this report to inexcusable length, aud, aiter all, would be but @ repetition of what has been often said. No nation can long neglect the wholesome maxims, founded upon universal expertence, that upuoid public credit without suffering finaucial disturb- @nces and bringing serious consequences upon its people. it wilt pot be denied that tne existing issue of legal tender notes, as a circu.ating me- dium, would never have been made except in the reat emergency of @ war involving no leas an issue than the preservation of the nation. Whether the argument im support of the validity of the legal tender acts be restea upon the war powers conferred on the government by the constitution or on other provisions of that tnstrument, it is ciear that Congress could not have been induced to pass such acts under any other circumstances than in a time of the most pressing and urgent need, such as a state of war only produces. The most earnest defenders of the power to issue gov- ernment obligations and make them by law legal tender for all debts, public and private, woula scarcely be found to advocate the exercise o! the power except under circumstances of extreme ecessity, and then only for the time of the emergency; and there is abundant evidence im the debates and proceed- ings of Congress, and in the statutes themselves, that it was not intended to make the legal tender notes the permanent currency of the country. The acts autuorizing tue issue of such notes provided for their conversion into bonds of the United States bearing interest at the rate of six per centum per annum. The act of March 18, 1869, in terms declares that “the faith of the United States is solemnly pledged to the payment, tn coin or its equivalent, of all obligations of the United States not bearing interest, known as United States notes,” ne same act ijurther affirms that “the United States solemnly pledges its faith to make provision at the medium of ex- change and to @ paper currency representative Of coin, because convertuble into it at the will of the holder.” The reason 1s obyi- ous, for coin, besides being recognized throughout the world as a medium of exchange, has a high intrinsic value, can be procured only by labor and in limited quantittes whicn cannot be increased by statutory laws, nor suddenly by otner means, while inconvertibie paper money may be produced in Indefinite quantities ata nominal cost, @ note of tue highest denomination costing no more than the Jowest, and its volume depena- ing solely on epuin sive enactment, Tue history of irredeemable paper currency repeats itself whenever and wherever it is used. It increases present prices, delades the laborer with the idea that he ts getting higher wages, and brings a fictitious prosperity, irom which follow inflation ‘| of business and credit and excess o1 enterprise 1m ever-increasing ratio, until it 18 discovered that trade and commerce have become fatally diseased, when confidence is destroyed, and then come the shock to credit, followed ‘by disaster and depres- sion, and a demand for relief by turther issues, A dollar legal tender note, such as is now ia cir- culation, is neither more nor less than the prom: ise ol the government to pay a@ dollar to tue bearer, while no express provision is made by law jor paying the dollar at any time whatever; nor is there any exisung provision for converting it into anything that stands in @ tangible ratio to a coin dollar, As far a8 existing laws go, there is no reagon why the legal tender note of the denomi- nation of a dollar should pass for one cent of gold, except so far as the government compels creditors to accept it im discharge of obligations to pay money, and obliges the weaith aud commerce of the country to adopt tt asa medium of exchange. ‘To this may be added, as an element of the value of the legal tender dollar, the hope that the gov- ernment will sometime or other redeem its paper promises Lacey 4 to their import. The uni versal use of and reliance upon such a cur: rency tends to blunt the moral sense and impair the natural seli-dependence of the people, and trains them to the belief that the government must directly assist their individual fortunes and business, help tuem in thew personal aifuirs, and enable them to ais- charge their debts by partial payment, Tis in- convertible paper currency begets the deiusion that the remedy for private pecuniary distress 18 in legislative measures, and makes the peopie un- mindful of the fact that the true remedy 18 in greater production and less spending, and that Teal prosperity comes only trom individual effort and turiut, hen exchanges are again made in coin or in @ currency convertible into it at the will of the holder, this truth will be understood and acted upon. ft ig not intended to call in quest#on the constitutional validity of the legai tender acts, hor the wisaum of those who, in the midst Oi arebeilion which taxed the utmost resources and energies of the lon, deemed the issue of such notes essential to success. Repeated adjudi- Cations of the highest judicial tribunal of the land sustaining their validity must be accepted as con- Clusive of the question. All that is now meant to be asserted is, that the exigencies which required the issue of such notes have passed away, and the time has come fur taking such steps as may be necessary to redeem the pledge then made, The ower to do 80, as well as the selection of means ‘0 that end, is with Congress. The Secretary can do neither more nor less than obey and execute such laws as Congress may enact. While tt seems to be very generally conceded that resumption of specie payment ts essential to the honor of the government and to the general welfare, the views of intelligent and well | niormed persone as to the best ade of resumption are 80 widely diver- gent, and the 8 that have been gested so multifarious, that the Secretary teeis embarrass- ment in suggesting @ pian, the details of which will commend themselves to Congress, But here are one or two fundamental ideas underlying the subject which, tt is believed, must be the basis of any practicable plan jor resumption, and are, therefore, submitted for the consideration ot Congress. It is obvious that there can be no resumption by tie governinent so long as the volume of paper currency is largely in excess of the possibie amount of coin avaliable for that purpose which may come Into the Treaa- ury in poy year, and whie 20 provision is made for NEW YORK HERALD, TUESDAY, DECEMBER 8, 1874.-QUADRUPLE SHEET, the conversion of this paper money into anything having a nearer relation to coin; nor is it possibie for the banks or people to resume go long as the large amount of Irredeemable paper now in circu- lation continues to be by law legal tender for ail private debts with reference both to the past snd the future. While this state of things. iaste gold will continue to flow from us, and find employment where the natural laws of trade, unobstructed by restraining legisiation, makes its daily use indis- ensable. The Secretary, therciore, recommends jongress to provide by law that alter an early and fixed day United States notes shall cease be legal vender as to contracts thereaiter made, But Uhis provision should not apply to official salaries or to other ordinary expenditures of the Gov- ernment under “then existing contracts or appropriations, Between the day thus to be fixed and the time of final resumption a sul- ficient period should elapse to enabie the people and banks to prepare for the latter by sucn gradual processes in business as will neither lead to violent contraction in credit and vaiues nor suddenly Increase the obligations of debtors, The sudden and immediate appreciation of the paper dollar to its par value in gold 1s not only no neces- sary element of redemption, but, as far as practi- cabie, should be avoided. Ifduring the period of the war ihe legal tender acts operated as a bank: Tupt law, compelling creditors to give acquittances upon the receipt of lesa than the full amount of their debts, this is no reason why the law for resumption should now compe) debtors at once to pay essentially more than they have contracted to pay. The adoption of such measures a6 will not aenly increase the obligations of debtors wiil go far to allay and disarm whatever popular oppo- sition to resumption of specie payments may now exist, and, besides, would be but just to the debtor clase, The day from which new contracts must be discharged in coin should be fixed sufiiciently far in advance to give the people and the banks time to understand It and to prepare themselves for 1s It is beltevea that not many months wil! be neces- sary for. that purpose; bat, to avoid the mischiefs already indicated, this day should precede the day of final resumption by a longer period, The time should not, in the opinion of the Secretary, be ex- tended beyond three years, and might salely be made as much less as in the judgment of Congress would suiliciently protect the interests of debtors and avoid the evils of too sudden contraction. The law should also authorize the mmediate con- version of legal tender notes into bonds bearing a low rate of interest, which, while inviting conversion, should not * 80 high as to appreciate the legal tender notes rapidly, and thereby operate oppressively on the debtor Class, Ag an additional inducement to the conver- sion of United States notes into these bonds at a low rate of iuterest, autuority should be given for making them security for tne circuiation of national banks The law should further pro- vide the means jor the redemption of such notes as may be presented for that purpose when the Period of resumption shall have been reached, To this end the Secretary should be aushorized to make @ loan not exceeding the total amount of notes remaining unconverted at the time of re- sumption, less the surplus revenue to be made applicable to such resumption, It is probable tuat the gradual and continued revival of business wul so far increase the revenues that a large loan will not be required for this purpose; but it is ad- visable that the Secretary be authorized vo make it in order to meet the contingency of a failure of sufficient surplus revenues. Such a loan should be made by issuing bonds to run for such time a8 the wisdum of Congress may suggest, and to be disposed of from time to time as the necessities of the case may require. In the opinion ot the Secretary these bonds should run for a long period, and should bear interest at arate not exceeding the lowest rate which the government may then be paying in retunding its six per cent securities. Aby substantial or usetul movement for resump- tion necessarily involves supplying the Treasury ‘with increased amounts of coin, either by i- creased revenues or an adequaie loan. The pres- ent condition of the credit of the government, which world be further enhanced by the adoption of measures for return to a specie basis, leaves no room for doubt that @ loan for such purpose would be readily taken at a low rate of iterest. Meas- ures snould also be adopted requiring the banks to hold gold reserves prepurawry to resumption on their part, Burt the Secretary does not deem at proper to pursue the matter into further detail. Il Congress shall conclude, as he earnestly hopes it will, that the time has arrived for the enact- ment of # law having for its object resumption of specie payments, its own wisdom will supply the necessary methods. That which is of the highest importance is the adoption of the definite policy of resumption. In view of the great and pressing importance of the speediest return to specie pay- ment consonant with steadiness of business and avoidance of violent and sudden contraction, dis- cussion of mere details in advance become of tittle Recess consequence. What is demanded by the est interests Of the government and the people, and by the highest considerations of virtue and morality, 1s, that Congress shall undo that state of things which only the necessities of war justified or required in this respect. A wise modification Ol existing statutes, whicu neither enabie nor per- mit the executive branch of the government to effect the restoration of a sound currency, will leave the laws of trade tree to resume their opera- tions, and many matters of detail will adjust them- selves, When the government shall have resumed specie payment, tt may be expected that gold will flow into the country in obedience to the law of supply and demand; the export of our gold pro- duct will greatly diminish and the millions of gold, which now constitute only a commodity of trade, will resume their proper functions by vecoming rinks @ part of the circulating medium, With the adoption of the policy of resumption, iree bankin; may safely be allowed, and the deficit of the actual amount of coin available for circulation can be supplied by bank notes convertible tnto coin, in liew of an inconvertible paper currency. The business of the country has not yet recovered from the disasters of the last year’s financial panic, the causes of which it is by no means ditticult to trace, It was the direct and immediate result of that ex- cessive development of speculative enterprises, over-trading, and inflation of credit which invari- ably follow large issues o1 Inconvertible paper cur- rency. The almost boundless resources and ener- gies of fhe country must compel the gradual re- establishment of business; but capital, with its accustomed sensitiveness to danger, is slow to return to the avenues of trade. Values are fluctuating and uncertain. Labor receives ite reward in a currency that is uw steady, and whose purchasing power changes almost daily. Neither the reward of labor nor the value of commodities ia measured by any certain standard. The enactment of a law having Jor its pr se the substitution of a sound and staple medium of exchange for an irredeemable paper currency will tend to restore confidence, and thus cause a revival of industries and general business. There will be no better time in the future to enter upon the work of returning toa specie basis, and the Secretary feels that he can- Not too strongly urge the adoption of the measures he has Indicated, or such others as will more cer- tainly lead to the desired end, BOONOMY AND HONEST APPROPRIATIONS, The Secretary contends that not only is rigid economy required by reason of the present condi- tion of the public revenues, but fidelity to obliga- tions and a just sense of responsibility to the people, demand it, as the confidence of the people will be given or withheld accordingly as the government is faithtully, honestly and economically administered, or otherwise. When it 18 understood that not a dollar is taken trom the people by taxation beyond what is neediul for the legitimate purposes of the government, they will not withhold their confidence or reiuse to support its financial measures. At such a time loans are freely taken and taxes cheerjully paid. It is essential to the proper strength of the gov- ernment at home, as well as to its credit abroad, that no greater taxes be levied than are required vo-carry on its necessary Operations and to main- tain the national faith and honor by prompt pay- ment of all its obligations, and when such reve- nues are collected it is no less important that they ve faithfully and exclusively applied to ihe legitimate purposes of government, From all the facts and tables in relauon to THE NATIONAL BANKS gtven tn che report of the Comptroller of tne Cur- rency (which have already been published In the HERALD) the Secretary concludes that there is a large amount of currency in excess of tne legiti- myte needs of business, and should serve. to dis+ pel the fallacy that greater expansion of currency is the proper remedy tor the general depression and contraction o! the volume of business, OOINAGE, The amount of bullion operated upon during the fiscal year was:—Gold, $68,861,594; silver, $15,- 122,151, Total, $83,983,746. Deducting redeposits, bars made at one institution and deposited at an- other, the deposits were:—Goid, $49,142,511; sil- ver, $11,484,677. The gold coinage, including worn pieces recoined, was $50,442,690; silver coinage, $5,983,601; gold bars stamped, $31,485,818; silver bars stamped, $6,847,799. Compared with the pre- vious year there was an increase in the gold coin- age of $15,193, in silver coinage, $3,037,805, and in lige aod silver bars, $10,816,086, During the past two fiscal years there was a gain in specie and bullion of about $33,000,000, and the stock Of specie in the country to be about $166, 000,000, CUSTOMS REVENUE. For the year ending June g0, 1874, the decline in receipts {rom the previous year fell of trom 188,059,522 to $163,103,833, a loss of neariy 25,000,000; the receipts for the first quarter of the current fiscal year were two anda half millions lesa than for the corresponding period of the last year. The receipts tor, the months 01 October and No- vember 1873 were $21,243,333; ior the same months the current year, $22,755,811; all this was in great bart owing to the reduction in duties. The Secretary recommends, in order’ to avoid the dimiculties attending hasty and partial modifi- cations, that provision be made:by law for the ap- pointment of & commission to prepare the detatis of @ bill for the purpose of revising the statutes in relation to imposts, to report to the next Congress, The impost statements tor 1872-73 show how heavily the revenues from cus- toms were depleted by the reduction of 1872, coffee alone having yielded $10,969,098 in 1871, and $7,192,074 © in 1872, On the importations of coffee, in 1878, the rate of three cents per pound would have ytelded nearly $9,000,000, and two cants per js almost $6,000,000. This record of soretgn prices for coffee tends strongly to the conclusion, making due allowance tor the effect of short crops on prices, that the duty repealed by the act of 1872 was adde to the selling price abroad, with no advantage to consumers here, while the country, as @ Wwhoie, has pata more than betore for the entire stock. The repeal of the duty on tea caused ite or no ‘geduction of prices to consumers here, butan !u- oxease Of prices abroad. The Secretary says there are. grave reasons for apprehending serious results Jrom any legislation depriving the government of the most eMcient means for the detection of fraud, s the legisiation of the last session of Congress created @ popular belief that smuggling is iess hazardous, INTERNAL REVENUB, ‘The total receipts from internal revenne were $102,644,746, a8 against $114,075,456 in 1873, de- crease Of $11,430,709. The suggestions made in the report (already published in the HeRaLD) of the Commissioner of Internal Revenue that the taxes Now collected by stamps on bank checks, Matches, perfumery, cosmetics, &c., may avolished and compensation made therefor by tn- creasing the tax on spirits ten cents per gallon the Secretary deems worthy the consideration of Congress. By making this change, he says, the ‘tems of Internal taxation would ve considerably reduced and the system simpittied withous loss of revenue, The means now in use for the collection of the tax on spirits wili, he believes, secure the collection of the increased amount, EXPORTS AND IMPORTS, The comparative coin value oi the exports and Imports for the fiscal year are given as fo\i0ws:— Exports of domestic merchandi: $569,433,421 Exports of foreign merchandise 16,819,519 Total exports. Imporis.... Bxcess of exports over imports. $8,376,693 Exports of specie ana bullion, $66,690,405 Imports of specie and bullion 28,454,906 Exoess of exports over IMMOrt...e+..ese0++ $9B17OAD Total excess of exports of merchandise, specie ‘an bullion over imports of same ..... ...... $57,052,197 The export of coin and bvullion was $24,952, 138, less than for the preceding year, while the exports of domestic merchandise have increased $63,803,118, @ decrease in importations of $74,729,868, COMMERCE AND NAVIGATION, Over 72 Voda cent of our imports and exporte during the last fiscal year was carried in ioreign yeasels, In 1872 16 per cent of this trade was transported in vessels of other nations. It is esti- mated that prior to 1860 from 76 to 80 per cent was done in vessels of the United States, The total tonnage of vessels of the United States appears to be 4,800,652 tons, an increase over that of the fiscal year 1873 of 104,626 tons, notwithstanding the omission from the official returns, under the act of mt i 18, 1874, Of canal boat tonnage, amount. ing to 13,065 tons, The tonnage of vessels built during the last fiscal year ts 432,725 tens, which amount shows an excess over that of the preced- ing Phage of 73,479 tons. From July 1 to Novem- ber 10, 1874, oMcial numbers have been awarded to 684 vessels, Whose carrying capacity amounts to 169,654 tons, Of these 213 were new seagoing vessels, varying from 100 to 6,000 tons, with an aggregate tonnage of 120,972 tons, Of this uumber 29 Vessels measured over 1,000 tons, 3 over 2,000 bee while 2 were iron steamships of 5,008 tons eacl REVENUE MARINE. The expenses of the Revenue Marine for the Qscal years are given as follows :— June 30, 186: + $1,229,434 June 30, 1870, $1,133,670 June 30, 1866. 177,230 June 30, 1871 121, June 30, 1867. 1,167,125 June 30, 1872 ‘930, 24 June 30, 1863. 1,293,661 June 3), 1873. June 30, 1869. ¢ 1,185,702 June 30, 1874... During the fiscal years 1872-1874 the marine have assisted 582 vessels in distress; seized or reported tor Violation of law, 5,009 vessels; satled, 521,648; boarded and examined, 82,223, and saved’ 150 lives. There are 30 steamers and 4 sailing vessels now in commission. LIFE-SAVING STATIONS. There have been in operation during the past year 82 stations, all located in three dis- tricts designated as the Cape Cod district, Rhode Island and Long Island district, and the New Jer- sey district, which embrace the most dangerous portions of the Atiantic coast. The reports of the Superintendents show that during the season of 1873-14 48s essels, valued, with their cargoes, at $2,331,006, and having On board 1,166 persons, were driven upon these shores. In 29 imstances the life-saving —_ apparatus was Called into requisition, and 303 persons were rescued by it. In the other cases its use was not Tequired, but assistance of some sort, in adminis- tering to the comiort of the shipwrecked or in sav- ing property, was rendered in nearly all by the force of the service. Ofthe amount of property jeoparded, only $457,284 was lost, and the number of lives lost was but The number of days’ shelter afforded shipwrecked per- sons at the stations was 494, The life-saving ser- vice has now been in operation under the present system three years on the coast of Long Island and New Jersey, and two yearson the coast of Cape Cod. The statistics of disasters upon these coasts during this time are reported as foliows:— Number of wrecks, 102; number of lives imperilied 1,607; number of lives saved, 1,604; number ot lives lost, 8; number of shipwrecked persons shel- tered and succored at stations, 149; number of days’ shelter afforded, 571; total value of property imperilied, $8,685,936; total value of property Baved, $2,758,281; total value of property lost, $927,655. THE LIGHTHOUSE SERVICE. Within the past year 25 lighthouses, 2 lightships, 7 fog signata, 8 beacons and 27 buoys have been es- tablished. ‘The total number of such aids to navi- ‘ation now in use in the United States is 546 light- ouses, 23 lightships, 42 fog signals, 382 beacons and 2,865 buoys, leans have been adopted not only for tmtrodnucing the improvements which have been made in loreign countries, but aiso, by. original investigations, to add to tue efficiency of the system. In tie latter the Board has recently been successiui in the introduction of new mate- rials of illumination and of greatly improved fog signals, COAST SURVEY. The operations of the coast survey within the present year again illustrate the special utility of that work. Ned several of the sailing courses on the Atlantic coast and on the Pacific dangers that would elude ordinary care in hydrographic re- search have been developed and made known to navigators, The data, scientific and practical, gathered in all branches of this important service, and on record for future uses, and the experience of the officers employed, are now sougnt by the goveromental and otuer commissions for deter- mining questions committed to them, whether in regard to boundaries, measures tor the preserva- tion of harbors, special structures subject to the action of tid od curregys, or for increasing local facilities in navigation.” Several routes sug- gested for an interoceanic ship canal have been traversed by officers of the survey, ana one of them now acts a8 @ member of the commission for devising means to improve the outlet of the Mississippi river. DEMAND FOR PAYMENT OF THE FIVE PER CENT EARNINGS OF PACIFIC RAILROAD COMPANIES, pe the sixth section of the act approved July 1, 1862, to aid in thé construction of the Pacific Rail- road and subsequent legislation the Central, Union, “entral Branch of the Union, Sioux City and Pacific, Kansas and Western Pacific Rail- road companies are required from the date of the completion of their several roads to pay the United States five per cent of their annual net earnings. Congress at its last session, by an act approved June 22, 1874, directed the Secretary of the Treasury to demand of the Treasurer of each of said companies all sums due to the United States, and in detault of paymene for sixty days thereafter, to certily that fact to the Attorney General, who Js required thereupon to institute such legal proceedings as May be found necessary to obtain payment thereof. The law, in the opinion of the Secretary, contempiates that demands shall be made for specific sums based upon the net earnings of each road from its completion, and for ‘his purpose he has assumed tnat the comple- tion in each case, in the absence of more definite information, dates trom the issue of the last in- stalment of bonds by the United States, under the act of July 1, 1882. The aggregate amount now due irom all the companies upon the best data at hand closely approximates $3,000,000, Should payment not be made within sixty days the mat- ter will be reported to the Attorney-General, in eo to the requirement of the act of June 22, 1874. BUREAU OF ENGRAVING AND PRINTING, The Secretary believes that the work of pre- paring the bonds, notes and stamps can be more satisiactorily ang safely done in the Treasury De- partment than elsewhere. He thereiore recom- mends that provision be made by law for prepar- ing all securities, stamps, checks, drafts, &c., issued by the United States in the Bureau of Ep- graving and Printing, and that the cost be regu- lated by law irom time to time. CLAIMS FOR PROCEEDS OF COTTON. The filth section of the act of May 18, 1872, directs the Secretary of the Treasury io pay to the lawtul owners or their legal representatives tne net proceeds, actually paid into the Treasury, of all cotton seized aiter the 30th day of June, 1865, by the agents of the government unlawtuliy and in violation of their instructions. ‘the number of bales of cotton seized uiter that date, the proceeds of which reached the Treasury, Was about 50,000, and the net proceeds thereof, averaging the same at $100 per bale, was $5,000,000, ‘The number of claims filed under thts act was 1,336; the whoie number of bales claimed {s 136,677, tne net proceeds of which, at $100 per vale, would be $13,687,700. It 18 well known that a large number of persons from whom covton was seized have mide no claim whatever, Under these. circumstances the magnitude of the aggregate o! claims pre- sented is Worthy of attention, Of the claims pre- sented to the department 650 have been submitted for decision and acted on as follows ejected, 437; continued for lurther evidence and stil an- der examination, 188; allowed, 25, QO the aggre- gate number or Claims presented there remain, not yet luily prepared or submitted for final decision, 686. ‘The claims allowed as aforesaid were for the proceeds of 1,846 bales, and the amount paid out on such Claim 18 $133,018. The following is a sam- mary :—The proceeds of captured and abandoned roperty covered into the Treasury were 20,910,656; awarded to claimants by Court of Claims under the act of March 12, 1563, $9,965,950; paid to claimants by the Secretary of the reasury under the act of May 18, 1872. $133,018; paid on judgments against Treasury agents under the act of July 27, 1$68,,$39,188; paid under various relief acts of Congress, $195,665; dis- bursed for expanses under joint resolution of Marca 30, 1868, $75,000; total, $10,414,822, leaving a valance Of $10,495, 833, Against which the following claims have been presented:— Amount claimed in suits brought in the Court of Claims prior to August 20, 1868, $16,617,703; amount claimed in cases tn the Court of Claims brougot subsequent to August 20, 1868, $6,766,374; amount claimed in cases presented to the Treas- ury Department under the act of May 18, 1872 approximate), $13,550,000; total amount claimed, 36,494,078; deducting from this sum tne balance remaining as above, $10,495,833, leaving the ag- gregate amount of claims presented in excess of the a amount coyered into te Treasury, KING KALAKAUA,. His Majesty of Hawaii in San Francisco. A Warm and Ceremonious Recep- tion by the Authorities. FLOLDING LEVEES. Views of the Monarch on Reci- | procity with America. ON TO WASHINGTON. San FRaNcisco, Nov, 29, 1874, His Majesty King Kaiakaua, of the Sandwich Islands, arrived at @ late hour last night, in the United States corvette Benicia, Uaptain William E. Hopkins, eleven days trom Honolulu. The voy- age to this port was made, for the greater part of the way, under sail, a strong southeast gale favor- ing the ship, and forcing her, under all the canvas she could carry, ten and eleven knots an hour, which proved to be @ veritable providential ais- pensation, because when the gale subsided and the ship was driven ahead by her engines two of the four bollers gave out, and the speed dropped from ten to six knots against head winds. However, the passage of eleven days was not so very prolonged, and as the ship made Most comfortable weather and all on board were well seasoned travellers, including the King and his suite, everybody enjoyed the trip. The cabin of Captain Hopkins had been fitted up for the accommodation of the royal guests tn as ele- gantand comfortable @ manner as possible in Honolulu, in obedience to instructions from the Navy Department, It was beautifully decorated with flags and adorned with green leaves, which retained their freshness and color for a long time, and festooned with trailing tropical vines. The after part of the cabin, occupied by His Majesty and Hon. Mr. Pierce, United States Minister to the Sandwich Islands, was separated {rom the forward part or dining room by a@ drapery of flags, His Majesty had a room with a broad, elegant bed- stead, canopied and luxuriantly fitted up, with bathroom and closets adjoining, and the neces- sary furniture, expressly purchased for the occa- sion. The modest supply of table furniture furnished commanders of vessels by our government was supplemented by liberal and suitable reinforce- ments of appropriate sets of dishes, to enable the guests to dine in a satisfactory style, and a gen- erous provision was exhibited by tne purveyor in laying in proper stores of edibles and the accom-. panying fluids, which tend so well to relieve the tedium of a sea voyage. The Captain’s servants were aided by the well trained servants of the King. Nothing was wanting to make the tripin every way royalin its Joys and pleasures. The company was small and harmonious. It consisted ofthe King, Governors J. 0, Dominis and J. M. Kupena, his private secretary, E. N. Mayor, Hon. A A. Pierce, United States Minister Resident, who accompanies the King as the representative of tne United States government, and the gallant and spirited host, Captain Hopkins, who dispenses his nospitality with @ grace and charming dignity char- acteristic of the naval oMcer of the golden days, In Captain Hopkins the Navy Department fopnd a representative admirably fitted for the delicate position of host to an honored guest of the people of the United States—a fact which was cordtally recognized by His Majesty and suite. During the passage the King honored daily two or three officers of the ship with an invitation to dine with him, until allof the wardroom mess had enjoyed his liveral hospitality., With the crew the King laid aside all ceremony, and conversed freely with the men. asking questions about the daily routine of ship’s litg the management of the battery and the history of their lives, meanwhile distributing cigars here and there and evincing in every way his interest in their welfare, From all hands, bigh and low, tne kindest expressions of good will toward His Majesty are heard. He is generous and liberal, and thoroughly demo- cratic in his feelings, and never falls to enjoy great popularity wherever he is known. All were, therefore, sorry to part with him this morning when he left the ship to land on the American Continent. His suite were equally agreeable and pleasant as messmates, and left a desirable mem- ory behind them. RECEIVING THE KING. The Benicia having anchored late last night of the Presidio, steamed past the city this morning to the man-of-war anchorage at Mission Bay, receiving asshe moved past Alcatraz a national salute of twenty-one guns, in honor of the royal Hawaiian ensign which few at her main, The Benicia’ heavy guns returned salute for salute, and on the arrival at Mission Bay additional exchanges of thundering compliments were given by the United States frigate Saranac, Captain W. W. Queen, Just in from @ cruise to the Mexican coast, and the sloop-of-war Portsmouth, Commander J. 8. Skerritt, recently home from a special cruise to Alaska with the Icelandic Commissioners. At her anchorage major General Scofield, com- manding the Division of the Pacific, and staf; the Mayor of San Francisco and Consul of Hawaii, Mr. Severance, paid their Tespects to His Majesty and waited until he went ashore to accompany him. At half- past eleven o’clock he embarked on the steam launch of the Benicia, accompanied by the gentle- men above named. The hoisting of the royal standard at the bow of the launch was the signal jor a royal salute ‘rom the Benicia and other ships of war, the yards were manned and the royal guest sailed off amid the cheers of the sailors ana with all the honors awarded on such an occasion. The launch then proceeded to Broadway wharf, where the King and suite landed amid the roar of the heavy artillery at Fort Alcatraz and the sharp salate of a battery of the California National Guard, stationed on the wharf. THE LANDING. An immense number of people of both sexes had assembled to witness the landing, and the King received a cordial and warm greeting as he entered an open barouche drawn by four horses aad drove off, escorted to the Grand Hotel by the First regiment of National Guard and a company of cavalry. As he proceeded through the streets the populace cheered him voctierously and showed him every sign of welcome, to which he responded by bows and smiles. On arriving at the hotel he was established in a grand suite of rooms, where he soon held a smalllevee anda gave audience to the officers of his escort and distinguished cit- izens. An immense crowd surrounded the hotel and watched for his appearance for some time; | but, beyond showing himself once or twice, he remained in his salon and received his visitors, surrounded by his staffand supported by Minister Pierce and the Hawaiian Consul, Mr, Severance, Among the visitors was General Scofield, who in- timated that he had in view a number of functions in honor of the King, and it was agreed that the sojourn of the royal party shonid last until Thurs- day or Friday next, A number of excursions, &c., are being planned, and it is certain that while here the King will enjoy himself if the au- thorities are successful in their efforts, HE RECRIVES THE HERALD CORRESPONDENT, This afternoon your correspondent cailed upon His Majesty atthe Grand Hotel and was very courteously received. The King, who is a fine looking, rather stout gentleman, of about torty- four years of age, with ao expressive counte- nance, bright eyes and an appearance indicating a thorough familiarity with che best society of the world, speaks the Engiish language with perfect dictum, and, although on topics connected with his extraordinary mission manifesting a certain degree of reticence, he converses freely on ordinary subjects. He ex. pregsed his vieasure in revisiting the United 7 States, and spoké in high terms of the Herazp, whose reputation and influence were well known tn his country, He had heard of and apprectated the wonderful enterprise exhinited 1n sending out Mr. Stanley to Africa tn search of Livingstone, Its friendly attitude toward his government and {ts efforte to bring about the passage of @ recip- rocity treaty between the Sandwich Islands and the United States were gratefully remembered by ‘Dis people, A LITTLE DIPLOMACY, His present visit was one of a iriendly nature to the President, and he did not propose to take any Part in the proposed negotiations with our gov- ernment for a rectproctty treaty, that important duty having been intrusted to the able embassy which he had accredited to the United States, Chancellor Allen and Hon. Mr. Coster, who would doubtless carry it to @ successful conclasion, He spoke of the advantages likely to , accrue to both countries by such @ treaty as he had alluded to, Sau Francisco and the United Statés generaily would enjoy the entire trade of the islands, which was of growing importance. He anticipated an agreeable visit through the United States, and perhaps his trip would be ex- tended to Europe. His voyage here on the Be bicla was extremely pleasant, All the officers had vied with each other in making the journey as pleasant ss possible, and he appreciated their kind offices very highly. In repiy to a question as to how long he would remain here he said that he should probably be offon Friday next and that it wouid be hig first duty to visit Washington and pay his respects to the President. Subsequentiy he was likely to go to New York and other cities to spend some time, but the duration of his sojourn would depend upon circumstances, His Majesty was so pressed by visitors that your correspondent was compelied to bring his inter- view to a close at this pomt, THR GOVERNOR OF MAXI His Excellency J. P. Kupena, Governor of Mant and one of the Privy Councillors of the King, isa bright, intelligent young man, a native of Hawaitl, and evidently @ great favorite, of the King. He informed me that the King and he had once be- longed to the journalistic guild, having been edit- ors of a daily paper in Honolulu, and always took great pleasure in meeting with their brethren, wheresoever found. He was also very much pleased with the kind treatment extended to him on the Benicta, and alluded to his friendship to many of our naval officers who have been sta- tioned at the Sanawich Islands, all of whom seem to have left a pleasant impression among the in- habitants of those islands. GOVERNOR DOMINICUS, His Excellency Governor J, O. Dominicus is brother-in-law to the King. and, I belleve was born in Oswego, N. Y., where his father once lived. He 18 8 good specimen of the succesful, universal and altogether happy American, amiable and of a generous nature. He believes tn the United States of America, and,,I fancy, prays for the eventual annexation of his country to the United States. The vast American interests in the Sandwich Islands, the commercial relations between the two countries and the great influence of the United States among the nations all lead but to one nat- ural result—a closer union between the two people. But as he has no diplomatic function, and is only on a visit of pleasure with His Majesty, he did not feel inclined to converse on what might be regarded as political topics. A NECESSARY CORRECTION. And herein I may as well correct an erroneous Teport found in one ofthe San Francisco papers, which seemed to indicate tnat tne King wag pleased with the success of the democratic party. Of course he 18 not familiar with the peculiar views of the diffrent political parties of the United States, and if he were he would not venture to ex- Pess an opinion either one way or another. He 1s, however, @ free trader, and would be pleased to see a party with that idea succeed so far as the interests of the Sandwich Islands are concerned. But of democracy and republicanism, as popu- larly recognized in this country, he is not familiar and has no opinions to express. So much ts due to the King, who has been misrepresented heré, On Saturday he will leave for Sacramento on spe- cial train, witb dining and commissary car. At Sac- ramento the party will halt to visit the State Capi- toland be entertained by Governor Booth. The train will Jeave during the night so as to bring the Party to the most interesting part ofthe Sierras at sunrise on Sunday morning. ‘rhe King will be accompanied to Washington by Colonel William M, Wherry, detailed by Major General Scofield to act as special aid on behals of the Division of the Pacific. Admiral Rogers will detail an oMfcer as special aid on behalf of the navy. THE TEMPERANCE IMPULSE. Brooklyn Ministers, Laymen and Ladies in Council—Preliminaries for a Thor- ough Organization of the Churches, The temperance movement in brooklyn has taken @ new impulse for the winter campaign, and yesterday afternoon, in response to a circular to pastors and churches, there was a goodly gather- ing in the chapelof the Young Med’s Christian Association, on Fulton street. Mr. J. N, Stearns presided and the Rev. A. G. Lawson was secretary. At a preliminary meeting hela on the Ist inst. a committee was appointed to araft resolutions to be presented at this meeting, That committee consisted of Rev. T. L, Cuyler, John Parker, A. G. Lawson, E. P. Ingersoll, and H.R. Nye. After the call for the meeting had been read, Mr, Parker presented the resoiations: which were in substance as follows:—They set forth that the vice of intemperance is the greatest: obstacie to the material, spiritual, moral and INTELLECTUAL PROGRESS OF THE COMMUNITY $ that it depends upon the manofacture and sale or alcoholic drinks as a beverage for its support; that the remarkable uprising of the women ot our land has revealod what a moral power lies bid in our churches for the suppression of this traffic; that it is the duty or ministers to preach orten on this subject and to give special attention and sup- port to every effort put forth for the ‘suppression of the vice of intemperance; that the several churches organize tempers ance societies which shall meet at: least once a month and that said societies shall be. represented in “The Brotherhood of Churches"— the name of the central committee growing out of this church organization~by tho pastors and two delegates from each church; that Bands of Hope be organized also in the Sabbatn schools, who- shall be represented in a central committee, which shall meet once a qnarter; that a fund be created for the purpose of disseminating temperance it~ erature and that the pastors be recommended to reach at least once between this and New Year's Jay with special reierence to the custom of intro. ducing wines on the tables on that day, Drs, Cuyler, Parker, Loomis, Messrs. Robbins, Spellman, Rev. Fred. Bell and others spoke, Mrs, Johnson, President of . THE WOMAN'S TRMPERANCE UNION, being Invited, addressed the Convention, and asked One very pertinent question, What shall be done with those whom they rescue”{rom Itquoy’ dens to keep them again out of temptation? Food, clothing, employment are needed oy many of them, A delegate hoped the committee to be appointed would take some measures for raising & fund of $5,000 Jor this very object. Dr. Cuyler announced that Miss Smiley would lecture in his church, on temperance, next Wednesday evening, when a collection would be taken up for tne Ladies? Union. A committee of fifteen was appointed to act a8 ah executive committee until the churches have organized and acted, and the officers of the Convention were directed to notify the churches of the action of the meeting. ‘SUSPECTED ARSON. Shortly before three o'clock yesterday morning afire broke out onthe first floor of the three story brick building No. 273 Third avenue. The flames had gained headway before they were seen, and, upon thetr discovery, caused great 6: ment among the inmates of the house, All the occupants reached the street without. excepting a German named Anthony Wi 8 barkeeper in & lager beer salvon sit ground Ol Ly He q Seem act win ‘abo tan hour ner alarm was The entire damage ci by it ia about Fico. urance. ted in the lager beer saloon, re W. Wittegneck & Vaiew- myiowe proprefre, re, but, as the police ai susptcious, they have arrested the men ni above, ‘and wil hold them to await 1 re au investigation by Fire Marshal Speldon