The New York Herald Newspaper, December 8, 1875, Page 13

THE FINANCES. Annual Report of the Secre- tary of the Treasury. * THE RECEIPTS AND EXPENDITURES Resumption of Specie Payment in the Light of Our Rezourees. THE STORY OF THE WHISKEY FRAUDS. Internal Revenue, Custom Re- ceipts and Cotton Claims. fhe report of the Sceretary of the Treasury is a very Jong aud elaborate document, treating very fully all matters relating to the department, Ho states that tho total net receipts for the year ending June 30, 1875, exclusive of loans, were $288,000,051 10, and the ordi- nary expenses (including the award to British claim- ants, $1,929,819) $274,623,302 S4, leaving a surplus royenue, exclusive of provision for the siking fund, of $13,376,658 26, The total ordinary receipts were $284,020,771 41, the preminm on sales of coin being 3,979,279 69, The following is a detailed statement of the total receipts and expenditures :— iecerers, d covered into tho Treasury ‘al year ending June 30, 1875, ‘Tho moneys receive by warrants during the fe were as follows From customs. From internal revenne. From saies of public lands From tax on circulation and national banks . From repayment railway comyanics From customs’ fines, po From labor, drayage, storage, &c. From sales of Lndian trust lands. From fees—cons' letters patent Jand.....+6 Prom proceeds of sales of gi PLOPEFLY. 0. severe From marine hospital tax. 7,208,379 16 by Paciiie + 882,274 91 +. 298,870 1,112'500 53 43,071 66 1,818,884 29 . 338,893 78 From steamboat fees . 260,944 75 From profits on coinage, &c. on 452,657 40 From tax on sealskins . 317,494 75 28,649 93 $284,020,771 41 «8,979,279 69 288,000,051 10 From miscellaneous + ou Total ordinary receipts. Premium on sales of coin... Total net receipts, exclusive of loans Balance in Treasury Juue 30, 1874, inel ing deposits of coin al Vaited States noles ropresented by certificates out- standing... é + 150,731,694 63 ‘Total available cash EX! E8., The net expenditures by warrants during the same | riod were :— or civil expenses, For foreign intercourse, For Indians For pension For military establishment, in fortifications, river and harbor provements and arsenals. . + 41,120,645 98 For naval establishment, including ves- sels, and machinery aud improve- ments at navy yards $17,346,920 21,497,626 27 For miscellaneous civil, e lic buildings, lighthuvses and collect. ing the revenues, SC TO 128,536 22 For interest on the public debt, includ- ing interest on bonds issued to Pavilic railway companies. ...... 103,093,544 57 For payment of award to 'b ; MR ccaritacga toes oosoae + 1,929,819 00 Total'net expenditures...... 623,302 84 Redemption of the public debt.......... 19,405,936 48 ‘Total net disbursoments ++ $204,029, 329 32 Balance in Treasury June 30, 144; 702,416 41 Total. ‘This ment | shows revenues for the fiscal year were, ..,.$288,000,051 10 ‘And the ordinary expenses (including the award tO British claimants, $1,925,819"... 2 274,623,302 84 that “the’ ‘net Leaving a surplus revenue, exclusive of provision for the sinking ‘und, « $13,370,058 26 By reference to the last anpual rcport, page 6, it will ube observed that the es p then made was that the Feveuues for this fiscal year would reach the sum of | $284,318,285 99, and Thut the expenditures would famount to $275,315,489 42 The total not ordinary receipts during the first quar- ter were $51,156,145 14; making the total available ' 08,561 95; ‘this ifeluding a balance in the Treasury, June 80, 1875, of $14,702,416 41. The total ordinary’ expenditures’ during’ the same time were | $84,047,543 76. For the remaining three quarters it 13 estimated that the receipts will be 216,300,000, and ithe total ordinary expenditures, $184,400,000;* the items of which are, $49,500,000 for “civil miscellane- ous,” including public ' buildings; for military estab- lishment, — $30,000,000; far naval establishment, .000,000; intterest on public debt, $67,500,000; for |pensions, $21,000,000; far Indians, $4,400,000, It is estimated that the reccipts for the fiscal year ending June 30, 1877, will be $304,000,000, and the oxpendi- tures, exclusive of the sinking {und account and_prin- cipal of the public debt, $269,265,000. It is estimated that for this fiscal year the surplus revenues of the gov- ernment will amount to $34,735,000, Tho eatumated amount to be provided for’ the sinking fund is $54,063,377 40, There is reason to hope, therefore, that the income of the government for this year will amply provide for all its obligations, including the sinking fund. - The estimates received from the several executive departinents are as follow: Legislative establishment Executive establishment, Judicial establishment Foroign intercourse. Military establishment. Naval ostablishment, Indian affairs Pensions Public works: ‘Treasury Department. . .. $6,152, 18,717,045 40 3,403,450 00 83,697,178 50 20,871,680 40 6, War Dopartment. 19,883, Navy Depsrtment....... 1,725, Interior Department. 800, Department of Agricul: PPO cs 95 dyeg Department of Jusiie 28,591,410 30 Postal service 9,281, 19 Miscellaneous 13,381,185 79 Permanent appropriations (inchiding $84,063,377 40 for sinking fund),..... 146,629,910 76 Total...... $814,612,608 48 REDULTION OF THE PUBLIC DEBT. By the monthly statement of the public debt, issued June 80, 1875, the reduction of the debt during the ear was shown to be $14,399,514 84, viz, :-— rincipal of the debt July 1. 1874 .... $2,251,690,468 43 Intorost due and unpaid, and accrued juterest to date... Total deht..... Cash in the Tre: Ys Debt, loss cash, in the Treasury. Principal of the debt July 1, 1875 . ‘Tnterest due and unpaid, interest to date . $2, 149,088,241 16 $2,232, 284,531 05 . 88,647,556 19 052,088 14 361 82 Total debt ..... Cash in the Treasury Debt, less cash, in the Treasury. Showing a reduction, as above stated Of... 6 weree It will be observ clusive of provision for the sinking fund, as shown in $2,128,688, 726 32 $14,209,514 St the statement of receipts and expenditures for the tis | cal year, were $13,376,658 26, or $1,022,856 58 less than the amount of the reduction of the debt as shown by the monthly statement of the game. The difference between these two statements arises from the difference of dates at which they ure made up, ag will be seon by a comparison of them/as regards the cash in the Treagury at the commencement and cloee of the fiscal year, and of the tom of “interest due aud unpaid, and accried interest to date,’ which, iu the monthiy debt statement, is treated as'a lisbility of the peveramecs precisely as 18 the principal of the debt, ut which is not so considered in the statement of re- ecipts and expenditures. ‘The cash in the Treasury July 1, 1874, 23 shown by the monthly debt statement of that date, and which embraced only «he moneys officially reported to the department at the time of its issue, Was... ‘ fhe cash in the Troasu @s shown by the account of receipts and expenditures (tho books from which it is prepared gsually being kept opon for a perio of forty-five days, so as to include at the date of closing the account all the reventies deposited at the diferent places of deposit throughout the coantry within the period covered by the same, and duly i, 1874, which are unascertained at the time Of tho issue of the montbly stat MCU), WAB eeeeeeeseserserseeres . Showing a difference of........ dhe cash in the Treasury July 1, 1875, ius shown by tbe monthly debt statement of tvat date, was. satis + $142,243,961 82 Andos shown by the statement of the receipts and expenditures of sume date Showing a diterone t + 1,278,603 87 | $2,805,378 50 | 1,352,485 00 that’ ‘thie ‘surplus revenues, ox- | NEW YORK HERALD, WEDNESDAY, DECEMBER 8, 1875.-QUADRUPLK SHEET. Tho difference in these two statements of cash reported to the Treasury, @) ap- pears by the monthly statement aud as asoertained by the ment of receipts . and nee the presage 4 and close of @ fiscal year, it wil BOR, Wiasasscesiee += $731,325 30 To which add the ene a bev) item bri “Interest duo and unpaid and acer interest to date’’, ++ 201,531 28 Making the sum of, . $1,022,856 58 It will, therefore, be perceived that no diflerence ex- ists in these two accounts other than that which grows out of the manner of their preparation, Of the necessity Jor economy In administering the finances of the government tho Sceretary say: Frugality in administration is among the foremost and most important points of a sound financial policy, Faithtul collection of the revenue and reduction of ex- penditures to the lowest point demanded by the neces- sitics of government constitute the first duty of those intrusted with making and administering the law, The obhgation to adhere strictly to this duty bas pec har force, while the public indebtedness is large and the industries of the country are suffering from financial depression. Rigid economy at such a time must lead to two important results;—First, advancement of the credit of the government throughout the financial world, and hence abflity to refund the debt at a lower rate of interest; second, and by no means least in im- Portance, greater Willingness on the part of the people | to bear the burden of taxation, when they see that their | government, like themselves, is reducing expenditures | to the lowest practicable ‘point, and applying the revenue received irom them to its necessary and legiti- mate-purposes, The general depression of business | which followed the cra of inflation and extravagance through which we have just passed, has made it ne sary that individuals, ‘associations and corporations should reduce thoir expenditures to the minimum ; and, having done 0, the taxpayers Lave a right to demand that the government shall do likewise, While the in- terest on the public debt and all other national obliga- tions must be promptly met, there are many points at which it is believed that considerable reduction of ap- propriations can properly be made; and the Secretary | Invites critical examivation of all the estimates submit- tod to Congress, Increase of public expenditures in time of great prosperity and extravagance is accom- plished by an easy process; Out a corresponding reduc- tion when the reverse comes can be brought about only | by the closest vigilance and most determined resistance | to every appeat for appropriations not required by the | | existing necessities of government, | | No appropriation of money should be made without | | Toference to the probable amount of revenue to accrue | | within the year im excess of existing obligations and | abilities, | THE SINKING FUND. The fifth section oi the act of February Apart as a special fund all duties on imported goods, and directs the appligation thereof— . | _ First—Yo the payment in coin of the interest on the | bonds and notes of the United States, Second—Vo the purchase or payment of one per cent | of the entire debt of the United States, to be made | within cach fiscal year alter tho Ist day of July, 1862, | whieh is to be set apart as asinking fund, and the in: terest of which shall, in lke manner, be applied to the ase or payment of the public dobt, as the Secre- sury shall from time to time direct. { Third—The residue thereof to be paid into the Treas: | ury of the United States, | “Section six of the act of July 14, 1870, directs that | | the bonds theretolore purchased and then held in the Treasury in accordance with the provisions of the act aforesaid, and all other bonds which had been pur- sed by the Secretary of the Treasury with surplus | | funds in the Treasury, and any bonds thereatter applied | | to said sinking fund, with all others thereafter re- | | deemed or paid, shall’ be recorded, cancelled and de- | | stroyed, and that the amount of’ the bonds of each | | class 0 cancelled and destroyed shall be deducted, | respectively, trom the ameunt ot e Hass of the out- | | standing debt of the United States. The last named | act also provides that, in addition to other amounts to | be applied to the redempuon or payment of the | puble debt, an amount equal to the interest | ; on all bonds belonging to the aforesaid sinking | fund shall be applied, as the Leesdarai of the Treasury | shall {rom time to time direct, to the payment of the public debt, as provided for in section live of the act first above damed, and appropriates froin the receipts for duties on imports the amount so to be applied, Theso acts are regarded by the Secretary as imposing upon him the imperative duty to take care of the sink. | ing fund, as therein directed, out of the coin received from duties on imports, This requirement is secondary | only to the payment of interest on the public debt. It takes precedence of all other appropriations, 4s by the | very terms of the legislation only the residue of re- ipts trom customs, after deducting imterest on the pubhe debt and providing for the sinking fund, goes into the Treasury. ‘The statute imposes upon the Secretary a duty to be performed annually, the requirement being that the purchase, or payment, for and on account of the sink- | ing fund Shall be mado within each fiseal ye: During the past fiscal year it was not practicable to purchase the amount ef United States bonds required jor the sinking fund, for the reason that such bonds could not be boaght at par, and the Secretary was for- | bidden by law to pay more. But the eleventh section of the act of March “3, 1875, authorizes the Secretary, for th obtaining Londs for the sinking tund, | to giv t he will redeem, in coin at par, any bonds of the United States, bearing interest at the rato of six per cent, of the kind known as flve-twenties; and further provides that interest on such bonds shald cease at three months from the date of notification. REPUNDING THK NATIONAL DEBT. Sinco the Secretary’s lust report to Congress the ro- funding of the national debt authorized by the acts of July 14, 1870, and January 20, 1871, bas been continued, The contract which was entered mto July 28 1874, and which is fully set forth and explained in | | the last annual “report, was revewed Jonu- | | ary 29, 1875, the contracting —_parties__‘being Mesars. August Belmont & Co., of New York, on bebalt of Messrs. N. M. Rothschild &’ Sons, of London, Eng- land, Messrs. Droxel, Morgan & Co., of New York, on behait of Messrs, J. 8. Morgan & Co.. of London, Bng- land, and Messrs. J. & W. Seligman & Co, of New York, on behalf of Seligman Brothers, London, Eng- | ‘land.’ The conditions of the contract were slightly modified, the contracting parties being allowed one haif | of one por cent commission, and binding themselves to defray all expenses incurred im transporting five per ceut bunds to London, and six por cent bonds, United States cgin coupons, and gold coin, from London to ae besides the expenses of preparing the new onds, : Under this agreement the contracting parties have | subscribed for $122, 688,550, Ure balance of “new fives” then remaining wnnegotiated; and the Secretary now has the pleasure of announcing to Congress that the | funding of the $£00,000,000 of ix per cent bonds into | those bearing five per cent interest has been accom. plished, thereby saving an annual interest to the gov: | ernment of $5,090,000, | The success which has attended the refunding of $178,548,300 ot the national debt during the last | Hxtech months, with the steady tmprovoment of the | onal credit, induces the belief that the remainder of the six per cent bonds can be refunded, within a reasonable time, in accordance with the provisions of the acts before mentioned, The aitention of Con- gress is, however, called to the fact that, by the terms | of the authorizing act, the bonds to be issued at the rate of four and one-half per cont are redeemable at any time after the expiration of fifteen years from the date of their issue, Bonds most easily placed on the | market, which are most sought for by investors, | and considered im all respects the most valu: | able, are those having a long period to run. | Taking into consideration the fact that but little | inducement is offered in the amount allowed j as commissions for placing the United States | loans, compared with that paid by otber governments, it is thought important to give these bonds all the cle- ments of popularity that may be possible; and the Sec- | retary, therofore, recommends that an athondment be | made to the act of July 14, 1870, which shall extend | the time of redemption of such bonds to thirty years from the date of their issue, | RESUMPTION OF SPECIE PAYMENT. | The depression of business and general contraction | of values which followed the financial panic of 1873 have continued (o a greater or less degree in all parts of the country, Similar financial convulsions have occurred in other countries, and their effects are now being felt to a degree as great, perhaps, as in this coun- | try. These disastrous disturbances bave been brought about in our own country by overtrading, overercdit and excessive enterprise of a speculative character, | stimulated by too great abundance of promises to pay existing in tho form of currency not bused | upon, or converuble into, the only actual money of tho world and of the constitution, gold and silver. | Other commercial countries which have suffered and are now suflering from Qnancial depression have felt | the iuiluence of like causes, while in some of them tho temptation to carry prosperous thnes to excess hus, ag has ofteu happened before, led to overproduction and that supertluity of trade and credit which must inevita- | | bly, sooner or later, be followed by a collapse and a corresponding period of depression. Although thgre | | ave gratityimg indications of increased activity in cer- tain branches of busivess im the United States, it must be admitted that confidence has not yet been restored to the extent necessary to bring about a generat revi- val or to put the trade and industries of the country upon a basis of activity aud permanent prospertiy. Nor | is it reasonable to expect that this will be done until thero shall be a nearer approach to resumption of Specie payment, and consequent improvement in the character of the currency, The con- stant disturbance of exehange and fluctuation of values, the uncertainties of business, the want of | contidence between individuals, corporations and com- | munities, which all experience proves to be the inevi- | table result of the use of amediumn of exchange possess- | ing no Intrinsic value, representing no considerable | amount of labor in its production, and not convertible | | into that which is recognized as money throughout whe | commercial world, are considerations which shoutd | claim the attention of every thoughtful representative of the people, However rapid may be our increase in population, wealth and material strength, we cannot | | toke the rank as.8 commercial or business people to which we aro entitled by superior natural advantages and the productive cnorgies of our population, or attract to us the surplus capital of the world, so long as we have fuctnating standards of value and such uncertainty in our fiscal legisiation as makes the assembling of Con- | gress ond our frequent olections occasions of anx- fety acd apprehension not only with the ‘holders 1 pa our securities abroad, but with business men at home. . Great Britain bas kept the value of, her pound ster. ling aubstontially unvarying for 200 years, and, in con- sequence of this steadiness, it has become the ‘basis of the transactiona, not only of British commerce and trade, but of all the world. In all civilized countries | goveroment negotiations with foreign monoy lenders are made upon this basis; and, as a general rule, the only foreign bills current all over the world are (hose which are expressed in pounds sterling payable in J.on- | don, which eity thus tocomes bd | the cenye Mi TO a true measure of property and debt? can be found; and hence, the commerce of the world revolves around % | anil pays tribate to its commercial standard, With an unsteady and varying curreney, having no. fixed rela- tion to the money o/ the world. but alwavs much below | peace, | United States notes, its par value, we can never dependence to which our gre: Lg steers entitle us, - very branch of industry and all classes of people are alike interested in the restoration of a sound and stable circulating medium—the laborer and producer no Jess than the merchant, bondholder and banker. Tho present unequal and fiuctuating currency oppresses and injures laborers and producers, who constitute a tees majority of our people, fur more than it affects njuriously dealers in money, Tho difference between gold and our paper currency 18 4 margin upon which experienced monoy dealers do business, and it is this that gives the opportunity for artilicil combinations whereby values are increased or reduced at pleasure. The purchasing power of the currency is increased or diminished by the manipulations of large operators united for that purpose, and producers und laborers are often made to sulfer, without effective power of resistance, Restoration of a sound and unvarying currency must bring better relative wages with more constant employment, because the value of labor, as of that which it produces, will be measured by 4 more certain standard; and, with the return of con- fidence, there must come activity, prosperity, larger markets, and greater demand, which, as beth reason and experience prove, do not teud to lower wages, or muke employment less certain. The claim thut the large issue of inconvertible paper currency has been benelicial to producers is, perhaps, sufliciently disproved by reference to the reports of siles of leading articles of produce, such as wheat, corn and pork, before and since the issue of such reney. The nmiost trustworthy statistics show that sach articles were sold in New York during the five years from 1870 to 1874, inclusive, for about the same price that they brought in the five years trom 1836 to 1800, inclusive, ‘ 7 Onthe other hand, it is equally certain that tio farmer has paid increased prices during the period from 1870 to 1874 for articles imported for consumption, upon ali of which the difference between gold and cur reney must be paid by the consumer, who pays in the latter, Thus the producer of domestic articles is con- stantly subjected to loss in exchanging his products tor such articles ag coflee, tea, sugars and other imported goods, whieh enter into daily consumption, In this connection it should be borne in mind that a greater volume of currency is required for the transaction of business when it consists of incouyertible paper, which that commercial in- Tesources and active does not circulate abroad, than when the cur. reney in general use is gold, which — flows through every artery of commerce, The statis- ties of our foreign ‘trade illustrate this proposi- tion. For every imported article the consumer must y to the importer, besides the cost in gold, increased by his percentage of profit, as much more as the differ- ence between gold and the currency with which pay- ment is made. This difference, commonly called the premium on gold, increases by many millions the total amount which would otherwise be required to complete ail such transactions, The proper office of currency, whether it be gold or paper, 1s to serve as a medium ot exchauge for the ad- jJustment of transactions between buyers and sellers, When it is sound and stable, receivable in all. parts of the commercial world, the amount which actually passes from band to band in business transactions is far be!ow the volume of business. A small per cent thercoft is adjusted by the actual handing of money. Exchanges are, for the most part, made by transfers of ‘credits through banks and other agencies. Wherever exchanges and business transactions are conducted on the basis of coin, and paper conyertible Mito it, the volume will be regulated by natural causes, Money, like merchandise, | will go where there js deinand for it, and where some- thing of value can be obtained im exchange for it, When the financial panic of 1857 created ademand for gold in this country, a ready and continued supply came steadily irom abroad to meet the necessities of our people, and brought speedy, reli Now, the on- foreed use of inconvertible paper currency’ not only obstructs the flow of gold from abroad, but drives from the country the precious metals ylelded by our mines. (jood and bad currency cannot be retained tn any- thing like equal proportions in a country haying com anercial relations with other Powers and peoples, ‘The Jatter will drive away the former. Gold and silver will flow steadily to those parts of tho commercial world where business is done on tho basis of an unvarying standard of values, and where every issue of paper is convertible into the pre- cious metals at the option of the hoider, because they are needed there, Such is the inevitable operation of the law of supply and demand; and the present lim- ited und inadequate supply of coin in this country is chiefly due to this cause, Gold has become a com- modity of trade, the price of which from day to day de- pends largely upon the will of these who have combined to control the market. This presents a serious obstruc- tion to all productive industries and commerce, afd in- trod into business transactions an clement of uncer- tainty which often unsettles the most intelligent cal- culations, and tends to destroy confidence, with- out which there can be no real’ or permanent pros- | perity. Apparent, but fictitious prosperity has often followed large issues of irredeemable paper currency, but no resuit 13 more certain to flow from a given cause than disaster and financial distress to follow a period of inflation of business and credit caused by excessive issues of paper currency. The philosophy which teaches by example, as well as the deductions of reason, establishes conclusively that there is no ellective remedy forthe evil but the removal of its cause. ‘The circumstances attending the issue of the United States notes now im circulation impose upon tlgggov- ernment a peculiar obligation to provide for their speedy and certain redemption in coin. They were issued in the exercise of a power which can be caded into use only in a lime of supremo necessity, and were paid out for the support of an army composed of brave and patriotic citizens who had responded to the call of their country in the hour of its extreme peril To suffer a promise made at ‘such a time and under such circumstances to be dishonored by subsequent indif- ference or non-performance would be little better than open repudiation, and would affect injuriously our national name and credit, dbis worthy of note that for the most part those who now oppose the redemption of legal tender notes, and | Who ask for a further issue and coutinued and indeilnite reissue of the notes now in circulation, Were most strenu- ous in their opposition to such issues during the civil war.’ The acts authorizing such issues Were denounced ag in violation of sound principles of finance, and not warranted by ‘the constitution, Their constitutional validity was resisted at every point and subjected to the tost of judicial decision in almost every court i the country, both State and national, The supreme Judicial tridunal of the nation upneld the acts as measures of necessity at atime of great oxigency, but it has neither decided nor intimated that such power may be exercised by Congress in time of public tran- quillity. Indeed it 1s tatrly inferrible, trom all tho Court haz said in the various cases in which the question has been before it, that the issue of such notes in time of peace is not within the constitu. tional power of Congress. Tho language and argument | of the Court leave no reason to believe that it would sus‘ain the claim of power to increase the volume of such issues or to reissue such as have been redeemed in obedience to law, wheg the public exigency no longer exists. Those who opposed such issues at a time of supreme necessity, and insist upon further issues when the emergeney has passed away, put themscives in the attitude ef opposing war measures in the midst of war, and advocating them in a time of profound Congress carefully confined the operation of the act to the period of necessity by authorizing “the re- issue from time to time, as the exigencies of the public interests shall require.” ‘The government is bound, not only vy cconomic con- siderations and proper regard for the interest of tha people, but by express and repeated promises, to pro- vide for the reqemption in coin of all its issues of legal tender notes.” The original Legal Tender act waa re- garded and treated at the time of its adoption as a tem- igrary measure, mado necessary and justifiable only by tRe exigency of war, which taxed all the resources and energies of the ’ nation. The first act author- izing” issue {February 25, 1862) {8 en- titled “An act to authorize’ the issue of and for the redemption or funding thereof, and for funding the float:ng debt of the United States,’ language that significantly expresses the views of the Congreas by which it was passed, It authorized the issue of $150,000,000 legal tender notes, and made provision for funding them in bonds issued qn the crodit of the government, bear- ing interest in gold and payable at a’ future day. This was the best the government could do in the midst of its struggle for existence and rightful su- premacy. The state of the public credit did not admit the possibility of the immediate procuremont of a suf- ficient amount of coin to redeem the notes absolutely. A wellsettled principle of political economy forbade the issue of paper currency without providing for its redemption, and in obedience theroto Congress made the orly practicable provision for the redemption of the notes which it authorized tobe ixsued and stamped with the quality of legal tender. The act of July 11, 1862, which authorized a further issue of $150,000,000, contained a like provision, and further provided that any notes Issued thereunder might be patd in coin, instead of being converted into bonds, at the discretion of the Secretary of the Treas- ury. Ihe notes thus authorized were issuod and gecepted by the people upon tho assuranco that they had the right to tund them in gold bearing bonds of the Cnited States, and this considoration undoubt- eilly constituted an important eloment of thelr valuo and gave them a quality in aid of their circulation and freo acceptance in ali business traneuctions, In the opinion of wise aud patriotic men, who, as the repre- | scutatives of the people, were charged with maintain. ing the Indissolubility and supremacy of our national Union, it was neceseary to resort to this extraordinary measure for the purpose of carrying the war to a suc- cessiul terminafion, It was, in substance and effect, a national war loan, based upon the credit of the govern- mentand coupled with a pledge for redemption; but the period of payment was to be thereafter deterinined when the public exigevey would permit, It was not in the minds of those who devised and consummated the cheme that thegovernment was about to enter upon the issuo of an irredeemable paper currency, which shoald permanently take the place of the world’s measure of values, Nor was it claimed by the most earnest advo- cate of the meagure that the constitution had given to Congress power to issue a permanent paper currency | ag a substitute for, and stamped by law with, the quali- ties which, in tho estimation of political economists, could exist only in the precious metals. In the light of the experience of the civilized world such a purpose would have been regarded as little better than financial macdioss, and {ts avowal by the authors of the legal tender acts would surely have caused the defeat of the plan for exorting the borrowing power of the govern. ment by means of such issues, But the purpose and meaning of the acts in question are not leit open for forensic discussion, having been authoritatively settled by the unanimous opinion of the highest judicial tribunal known to our constitution. As soon after the termination of tho war as 1863, it was argued beforo the Supreme Court that the logal tender notes of the Upited Stares were isaned as mong, @ sub- stitute fof melailic currondy, ain at, having beon made legal tender in payment of all debts, including (with certain exceptions) the, government's own, of course, when presented for payment, if similar notes, being legal tonder, wero offered jp exchango for them, tho debt would be discharged by # delivery of new *~ 13 notes of the same kind, and so on ad infinitum, To this argument the Court replied :— “Apart from the quality of legal tender impressed upon them by acts of Congress, of which we now say nothing, their circulation as currency depends upon the extent to which they are received in payment, om the quantity in ctreulation, and on the credit given to the promises they bear. In other respects they resemble the bank notes formerly issued as currency. “But, on the other hand, 1t is equally clear that these notes are obligations of the United States. Their name imports obligation. Every one of them expresses upon its fage an engagement of the nation to pay the bedrer a certain sum. The dollar note 14 an engagement to pay a collar, and the doilar intended 1s the coin dollar of the United States—a certaim quantity in weight and fineness of gold or silver, authenticated as such by the stamp of the government.” ‘This authoritative declaration of the Supreme Court defines clearly and precisely the meaning and intent of Congress in the acts which authorized the issue, and should be accepted as conclusive of the obligation and duty of the government to provide for the payment in specle of all such issues, Nor, is this all, Subsequentto this decision, and for the purpose of putting a quictus upon the mischievous discussion of the subject, Congress, on the 18th day of March, 1569, declared by public act that ‘the United States’ solemnly pledges its taith tomako provision at the earliest practicable period tor the redemption of the United States notes in cvin.’’ ‘These provisions of the various acts of Congress, which were passed with the approval of the Executive, the clear adjudication of the Supreme Court, us well as tho plainest principles of polit cal economy’ and proper rogard for (he public weltare, commit the government to the redemption in coin of the notes issued under the circumstances before stated, National faith and honor could not be more distinctly or unequivocally pledged | to the pertormance of a plain duty. In View of these solemn and repeated pledges it seems idle torresort to the consideration of elementary prin- ciples of finance to prove the evils of an irredecmublo paper currency. In the face of such pledyes, disregard of which would bring national dishonor and ‘serious, if not irreparable, injury.to the public credit, it can hardly be nocessary to discuss questions of expediency or to pomt out the ills which the experience of the civilzod world shows must follow a violation of weil known iaws of political economy. Iv is among the first and most important functions of government to give to its people a sound and stable cur- rency, baying a fixed relation to the standard of values in general use among nations, ‘The true matter with which goveroment bas to do is hot so much a question of yolume as of soundness and siability of the currency When it has established a currency of tixed and stable value, haying a known relation to that of other powers and iurnishing a uniform medium of exchange, the volume may and should bo left to be determined by the wants of trade and business, Natural causes, aided by individual effort and enterprise, wiil regulate the yol- ume of currency far more wisely and with groater sutety to business than acts of Congress imposing arti- ficial limits, subject to increase or diminution at every session. The existing provision of law making United s ates | notes legal tender for all debts, both public and private, | with certain exceptions relating to transa government, 13 un artificial barrier to the and silver, tending not only to prevent the flow of gold toward this country, but promoting the shipment abroad of our own production of the precious metals, For this reason Congress should abolish the legul ten- der quality of the notes, a4 to all contracts made and tions with | use of gold | Kabilities arising after a fixed day, The | lst day of January, 1879, being already fixed by law as tho timo when tho redemption ted States notes then outstanding sball begin, it be proper and safe to provide that such notes #Liall wou! not curred after the Ist day of January, 1877. Such an act would rot too suddenly change the value of the nutes, and would not affect tnjurously either debtors or creditors, but would remove a present obstruction to the retention of our gold and silver production, and create a demand for the return of gol now abroad, thus pro- moting final resumption by preparing the country for th In furtherance of the purpose of phe act of the last Cone gress to provide for the resumption of specie payments, the Secretary recommends that authority be given for funding legal tender notes into bonds bearing a low rato of interest, Such bonds should run tor a longer period of time than those now authorized for re. funding the interest-bearing debt, and should to made avuilable to national banks for deposit to secure their circulation and other liabilities to the gov- ernment, and should bear arate of interest so low as not to to'canse too rapid absorption of the notes, It seems probable that a bond bearing interest at the rate of four per cont would invite the funding of a suilicient amount of legal ender notes to lessen materially the sum of gold which, in the absence of such provision, must be accumulated in the ‘Treasury by the Ist of Jan: uary, 1579, to carry out the imperative requirements of | If it be apprekended that | an unlimited | the uct of January 14, 18’ authority to the Secretary to fund amount of notes might lead to too sudden contraction of the currency, Congress could limit the amount t be funded in any given period of time,” The process being in no sense compulsory as to the holders of United States notes, and the rato of intetost on the bonds being made low, it is not probable that currency which could find protitable employment would bo presented for redemption in such bonds. Only the excess of notes. — above tho needs of business would seek such conversion. Author- ity to the Secretary of the Treasury to redeem and can- cél two millions of legal tender notes per month by this process would greatly facilitate redemption at the time | now fixed by law, and, besides, would have the advan- tage of publicity as to the exact amount to be with- drawn in any given mouth. Bonds issued for this pur- pose should be of the denomination of $50 and $100, and any multiple theroof, in order to mect the conven- tence of all classes of holders of United States notes, The faith of the government now stands pledged to resumption on and after January 1, 1879, and to the final redemption and removal from le currency of the country of the legal tender notes as fast as they shall be presented for redemption, according to the pro- visions of the act of January 14, 1879. To resi en the Ist of January, 1879, without further legislation would roquire tho accumulation of a largo amount of gold in the Treasury in order to avert the possibility of failure of the plan, Such an amount of gold can be procured’ with dificulty, and not without moro or leas embarrassing effect. upon the trade and commerce of our own and other countries, The pres- entubundance and cheapness of both currency and capital presents a favorable opportunity for the with- drawal and redemption of a gonsideradle part of the outstanding legal tender notes, thereby making eas: and effectual the redemption now ptedged, Such withdrawal of legal tender notes, thus dispensing with tho’ necessity for accumulating gold in the Treasury in proporiion to the amonnt withdrawn, would tend to -ap- preciate those remaining outetanding and make it eusier to protect and keep in circulation the silver coin now authorized to be issued. ‘The act last referred to isan express recognition of the duty and obligation of the govern specie payment at the day therein named; and, how- over widely diferent may be the views of intelligent persons upon tho means adopted by Congress, it is gratifying to know that the end sought to be reached has niet the concurrence of the country, and that a majority of the people, wherever the matter bas been publicly ana fully discussed, ba nified their ap- proval of the determination of Congress to be faithtal to its plodges and to relieve them of the ills of an irre- deemable paper currency. ‘The act in question not only makes express provision for resumption at a fixed date, but commits the govern- meut to the use of all such means as may be weedful to thatend. Ifexperience shall show that the means provided by Congress need to be supplemented by further legislation for the ensicr and more certain accomplishment of tho end, it must be assumed that Congress will not sulfer the great purpose to be impeded for want of such additional legislation. The act confers large powers on the Scc- retary of the Treasury touching tho issuo of United Statos bonds for the purpose of procuring the supply of gold necessary to execute such of its provisions as go into iminediate operation, and, to provide for tho re- demption in gold of United States notes outstanding on and alter the Ist of January, 1879, In this respect tho power conferred on the Secretary is ample, but if, for any cause, it should be found impracticable to accumu- late in the Treasury a sullicient amount of gold to carry out the provisions of the act the Secretary is loft with. out the choice of other means to accomplish the end. nent to resame | e legal tender for contracts made or liabilities in- | | spirit and intent of the act, It may, perhaps, be doubted whether the process | of eccumulating’ a large amount of gold by a given time could go om without meeting oppo- sition from the financial powers of the world, It is gafeto say that so large an amount of gold as would be required to curry out the purpose and dirce- tion of the act cannot be suddonly acquired. It _can be done only -by gradwal processes and by taking ad- | vantage of favorable conditions of the imoney market trom time to time. Tho loss of interest on large sums hoarded in the Treasury for a considerable period in advance of Janu- ary, 1879, is @ consideration not to be disrogarded, aliliough it should not be permitted to outweigh the benetits to result from a full and comptete execution of the act, The Secretary regrets that the condition of the Treasury has been suchas to render it necessary to make sates of gold coin from time to time to meet cur- rent expenditures payable in currency, Such sales have beon made in New York city, upon public notice, in accordance with the plan previously adopted, and have been limited from month to month to the amount necessary to keep on hand « suf- ficiency of currency to meet’ probable demands upon the Treasury under existing appropriations. 1t is the desire of the Secretary to retain in the Treasury, so far ag practicable, the gold received from customs, and salos are discontinued wheneror the balance of cur- rency in the Treasury is sufficient to mect currency payments. THE NATIONAL BANKS, The report of the Comptroller of the Currency, con- taining a defence of the national bank systom and the | usual bank statistics, has already: been published in the Heranp. Tho report concludes:— ‘Tho amount of cash reserve held by the national banks, including their redemption fund on deposit with the Treasurer on October 1, 1875, the date of their last report, was $149, 460,452, which is 366,379 more than they would have been required to hold upon circulation and deposits prior to the passage of the act of June 20, 1874, ropealing the provision requiring reserve upon circulation; and tho cash,reserve held by New York city banks at the last named date was $60,467,759, which also excecds by $5,324,687 tho amount that would have been required upon circulation and de- posits provious to the passage of that act; from which it is seen that, on account of the redundancy of money, the stagnation of busines and tho consequent low rato of interest during the past year, the effect of the act repealing the reserve upon tho clreulation cannot yet be definitely ascertained, COINAGE. The report of the Director of the Mint, presenting in detail the operations of the mints and assay offices, has also been published in the Hera, REVESUR FROM CUSTOMS, The receinta from customs jor the year ending June | duty on sugar and molasses, 30, 1874, were $163,103,833 19, and at the correspond- ing date of 1875 they were $157,167,722 35, a decline of $5,036,111 34, Tho reevipts for the first quarter of the current fiscal year were $44,253,626 25, while for the corresponding period of last {caf Uney were $46,051,200 10, showing decrease of $2,417,573 85. For the months of October and November, 1875, the® receipts were $23,936,950 43, and for the same months of last year they wore $22,755,811. The effect upon the customs receipts of the act of Fobraary 8, 1875, imposing duties on certain articles therein enumerated and making additions to the free list cannot yet be stated with certainty. Nor is it pos- sible at present to determine with accuracy the effect of the act of March 3, 1875, restoring the ten per contum of duties repeated by the act of June 6, 1872. ‘The tollowing statement of importations of the classes of merchandise chiefly concerned 1s derived from the Burcau of Statistics, and to some extent / serves to show the eifect of the act of March 3, 1873, on the duties received :-— i Value of importations ‘of cotton, glass and glassware, indiarubber aud gutta- percha, iron and 8:cc!, leather, metals uot otherwise provided for, paper, straw, wool (including hair of aipsca, &e.), and p ufactures thereof, for the pine months ending September 50, 1874..... % 2 904,917,416 ‘alue of tiny ions of same articies for orresponding period of 1875 (incmdmyg the seven months next succeeding the act of March &, 1875) Decrease. ......2ssseeeccsecesees This decrease was occasioned-principally Ing off in two classes of iinportations, viz:— Iron and steel and manulactures thereor Wools aud manufactures thereof, Total... Returns for the tour months ending June 30, 1875, show that of unportations for that period, amounting to $30,047,005, duties have been pitid on $25,629,606 withdrawn tor cousumpiion, yiekling $10,054,719 of revenuv, In this amount is of course included the ten Per cent restored by the act of March 3, 1875, showing Au apparent increase for four mouths of $1,095 But in this connection there is to be consid fact that, for the corresponding period of the year 1874 the importations of the sane classes of merchandise ainounted lo $36,022,467, Ehowing a decrease in impor. tions for the iour months ending June 40, 1875, of 5,462, of which $4,800,878 is duv to the falling olf mportations of iron and steel and manufactures thereof, It is, therefore, ditlicult to determine, in the light of returns now at hand, to what ex eut the ap- parent increase of revenue resuiting from the repeal of the ten per cent reduction is ollset by the decrease in {mportations, and, consequently, in the amount of en- tries for consumption on payment of duties, Iu relation to the twenty five per cent increase of under the act of March 3, 1876, it is still more ditticult to determine the effect on the revenue Owing to tho change of classification and of drawback on retined sugar exported, together with the fact that hardly sufticient time Has clapsed to euable a compurutive statement of much value to be prepared, the increase of revenue derived from the ad- ditional duty levied cannot be given, The actual in- crease of duty collected from the time the act took effect, Mareh 3, 1875, to June 30, 1875, was $2,445,017, but how far this increase is atfec the clas ate tion and drawback cannot be determined with cu Pursuant to the act of June , admitting free of duty articies intended for the International Ixposi« tion of 1876, at Phitadolphia, under such regulations as the Secretary of the Treasury shail prescribe, collectors of customs at the various ports have been’ furnished with regulations designed to cover the subject i the It is hoped that, while theso regulations will afford all reasonable facilities for the importation of such articles as may be consigned for exhibition from tho varions nationalities of the world, they are so guarded as to prevent frauds upon tho roventie by persons who, under pretence of being exhibitors, may attempt abuses of the privileges ac- corded them, INTERNAL REVENUE, ‘The roport of the Commissioner of Internal Revenue, herewith transmittod to Congress, presents fully the condition of this branch of the revenue, with esti- matet receipts for the remainder of this ‘fiscal year, and explains, as fully as can now be done, the effect of the act of the last Congress upon receipts from the tax on distilled spirits and tobseco. ‘The following tabular statement shows the compara. tive reccipts trom tho various sources of internal rev- enue for the fiscal years ending June 30, 1874 and 1875, respectiv Sources. 1875, Spirits 091 Ine. .$2,637,90 Tobacco. 37,308,461 Inc.. 4,060, Pm't'd liq 9,144,004 Dec. . Banks & b’kers Penalties, &c.. Adhesive’st'pa, BYk taxes ander repealed laws Totals. .... $102,644, This table ig made up from the reports of collections made to the Commissioner of Internal Revenue, which include commissions on sales of stamps paid in kind, and therefore do not enter into the actual cash receipts of the Treasury. They include also, sums reported as collected but not actually paid into the Treasury that time, Hence there 1s an Mpparent diserepanc: between tho totals here shown aud the aggregate amount deposited on account of internal revonue, as shown by warrants covering the same into the Treasury for the fiscal year. ‘The receipts from internal revenuo for tho frst quar- tors of tho fiscal years ending respectively June 30, 1875 and 1876, were as follow: First quarter of 1875 see + $26,314,615 33 + 28,199,723 50 First quarter of 1876. Tnereaso, +++ $1,885,108 17 ‘The azgrogate receipts for the months of October and November of the current year wero $19,638,907 19, while for the same months of last year they wero $17,476,202 99, showing an increase of $2,162,704 20, Since the last annual report to Congress fifty-six col- lection districts have been abolished by consolidation with other districts, with an estimated annual saving to the government of about $170,000, During the past fiseal year trfuds of unusual charac. ter and mayuitude were discovered in this branch of the service, which appear to have been carried on with 4,097,248 Inc 281,107 Doc 6,557,229 Inc. 1,080,111 Inc,, 315,231" | more or less injury to the revenue for several years | past. Tho report of the Commissioner sets forth in de- tail the mannor in which such frauds have been perpe- trated, and gives the estimate of that office of the ‘| amount of probable loss to-the revenue, with suggestions of modifications of the law deemed essential to more certain collection of the tax on distilled spirits. The attention of Congress is invited especially to that feature of the report. The recommendations made therein for modiiication of the law with a view to the preventioy of like frauds in future are concurred in by the Secretary and commended to the consideration of Congress. So long as it is necessary to maintain a tax on distilled spirits amounting per gallon to three or iour times the cost of production, it may be ex- pected that the great temptation to avoid payment of the tax, on at loast a part of the production, will excite the cupidity of producers, and that every possible device for evasion wil be used. Each gallon of spirits that escapes payment of tax increases by so much the proiit to the producer, It cannot be denied that a tax imposed for revenue purposes 18 regarded by many per- sons as a harsh exaction from the citizen,to be thwarted if possible, or that violations of the punitive provisions of revenue statutes are looked apon' by many as yvenial offences. But the necessities of government, including the maintenance of national faith, imperatively demand the closest collection of ali the revenues levied by law; and, besides, due regard for the interest of those who meet honestly and promptly the demands of govern. ment upon them in this respect requires that all others shall be made to bear their proper snare of such taxa- tion, Every evasion of tax by dishonest porsons must eventually increase the burdens of honest taxpayers. These considerations should induce every citizen to render proper aid to the government in its efforts to collect the revenue by giving information of violations of law and of trands on the revenue which may come to his knowledge; out experience shows that few are will ing to give such information *unless they can receive direct pecuniary compensation. When recently it became kngwn that the govern- ment was losing a large part of the revenue due from distilled spirits it was found extremely difficult to ob- tain exact or satisfactory information as to tho method of porpotrating the frauds or to ascertain with reason- able cortuinty who were the guilty partics, It was ob- vious that frauds on the revenue were being extensively pnetised, and it was equally cicar that this could not successfully dono, under existing provisions of law, without guilty connivance or participation by inferior officers, and at least culpable negligence on the part of others of higher grade. In the opinion of the Sccretary the circumstances seomed not only to justity, but require, a resort to means other than thogo in ordinary use fur detection by the Bureau of Internal Revenue, Accordin, the appropriation for detecting and bringing to trial and punishment persons engaged in counterieiting and tor detocting other frauds upon the government was drawn upon for this purpose, he Solicitor of the Treasury, who is charged with@he proper use and disbursement of that fund, was directed to inquire into the alleged frauds on the revenue in the mutter of distilled spirits, and was instructed to spare no proper effort to detect tho guilty partics, and furnish their names, with tho evidence against them, to the propor officers of the Department of Justice. This duty was entered upoa with energy, aud, after the existence of conspiracies and combinaticns to defraud the government was de- veloped, the investigation was continued, in co-opera- tion with officers of internal revenue, and resulted in the certain detection of frauds on the revenue of more than ordinary significance, Underthe direction of tho Commissioner of Internal Revenue, the tvestigation has been pursued with commendable energy avd A considerablo number of oicers of intornal revenue ve been found to be in guilty collusion with distil- and rectifiers in fraudulout — practic whereby large sms were lost to tho rev. enue. The evidence thus sequired, having been reported to tho proper district attorneys, has resulted ina large number of prosecutidus tor con- gpiracy, duplicate use of stamps and other offences, So | far as these prosecations bave heen completol, they have, with few and comparatively unimportant tions, resulted in convictions, A In tillers, rectifers and subo rovenue, have pleaded guilty to indictments against thom, thus confessing their offences aud thrown them- solves upon the merey of the court, Besides the {ustitution of criminal proceedings, eivil suits have been brought upon th of distillers; distillories and gyrits havo been seized as forfeited to the Unitod States tor violations of law; and, wherever the evidence warranted, assessinonts have been made against distillers for delinquent taxes and placed iu the hands of collectors, with instructions to collect by process of law. Urgent applications have beea pre: ane for the compremise of many of the cases, ic thas been deomed better for the interest of the government to allow all of them to take the usual | course in the courts; hence, all such epplications haw been denied. The Secretary considers it it to the future collection of the revenue that parties ¢1 io persistent and systematic frauds shall be visited with the severest penalties of the law. To this end instruc. tious have been repeatedly given to officers of interna! revenue, and others in the service of this departi to render all proper assistance to the officers of the partment of Justico in the prosecution of the cases now pending, and in the detection and punishment of such guilty parties as Lave not yet been indicted. It iw deemed of especial importance that officers of the government who have betrayed their trust, aad en- gaged in frauds on the revenue, shall be brought to speedy and condign punishment, Those who are in- trusted with official duties and respoumbilities should bexiven to know that the government will not deal lightly with them when they prove to be guilty of corruption in office. Taxpayers cannot ex: pected to deal honestly with "the government when its own trusted officers are permitted to participate in frauds on the revenue, without incur- ring swift and certain punishinent. The highest guar- antee for the faithful col'ection of tne revenue is in tho Vigtance and integrity of officials, This guarantee can be secured only by careful selection in the first in- stance, by retaining in office such as have proved their efficiency and honesty, and by prompt dismissal and Vigorous prosecution’ of such as bave been found commEncR AND Nav! is little change in the proportion of the foreign g trade transacted in foreign vessels, about sev- enty-four per cent of imports and exports during the last fiscal year having been curried in foreign vessels, againsi seventy-two per cent for the preceding year and seventy-six per cent tor the fiseal year 187 The Register of the Treasury reports the total ton. nage of vessels of the United States to be 4,853,732 tons, An increase of 53,080 tons over that of the tiseal year cuding June 30, 1874, exclusive of the canal-boat ton- haze, amounting to ‘about 48,000 tons, exempt from enrolment and license under the act of Congress ap- Proved April 18, 1874. TION. eaciual increase is believed to be about 141,87: tons, this amount being the excess of gains over losse dui “ur; but this aggregate has been redaced to 58.080 tous (the inerease first above mentioned) by Omitting tue tonnage of the exempted canal boats, and by corrections of tonnage returns, about 40,000 tons, The following table exhibits the total tonnage for the last two years:— Vessels,| Tons. ered. 2,081 11,553,828 29,904)3,209,004 285/4,893, 732 and” | 486 \4, 800, ‘The tonnage of vessels built, as given by the Regis- tor, 1s 207,609, being a decrease from that of the pre- ceding year of 135,086 tons or over 31 per cent. The bumber of vessels built was 1,301, Official numbers have been awarded by the Bureau of Statisties since July 1 to November 10, 1875, to 804 vessels, Whose carrying capacity amounis to ‘146,115 tons. Of this number sixty-three were new seagoing ve Is of 100 tons and over, forty-flve of 1,000 tons and over, three of 2,000 and two of 3,000 Cons each, with an aggregate tonnage of 100,226 tons. RKVENCE MARINE. The past year is the frst of the administration of thia branch of the pubbe service, with the advantage of the coinpletion of the reorganization bogun four years ago, The improvement resulting from this reorganization more than equals all that was anticipated, ‘The report ef the commission which proposed the plan docs not mndicate that any other benefit was expected than a re- duction of the expenses of the services. The result shows, however, not only a considerably larger reduc- tidn than” was anticipated, but the —attain- ment of a much higher degree of efficiency than characterized the service in former years, The commission estimated the annual cost of maintaining the service, when the reorganization should be accomplished, at $043,639, The expenditura of the last fiscal year was $597,: 56, an amount con- siderably lower than that of any previous year since separate accounts of expenditure for the maintenance of this service have been kept, and about $300,000 less the averaye annual expenditure previous to tho uning of the reorganization. LIPE-SAVING SERVICE: The stations in operation during the past year are lo- cated in districts Nos. 1, 2, 3, 4and 6, Ine of coast from the ) pe Hatteras, with the exception of that portion em- braced between Cape Henlopen and ¢ Charles. The costof maintaining the ser during the last fiscal year, exclusive of the expenditure for the establish- ment of new stations, was $ics.204 52 The following is Astatement of disasters to vessels which have oc- curred within the field of the operations of the service since the adoption of the preseut system in 1871 and the results of these disasters. It should be observed that during the season of 1871-2 the service was limited to the coasts of Long Island and New Jersey, and daeng - —- of 1872-4 to Cape Cod, Long Leland and Now Jers rv — ‘Total number of wroeks........5 135 ota! number of lives imperilied 2,533 Total number of lives saved sb 254 ‘Total number of lives lost. ww ‘Total number of shipwrecked persons sh tered at the stations... Total number of days’ shelter alforde ‘Total value of property imperilled Total value of property saved. Total value of property lost... LIGHTHOUSK SERVICE. Tho lighthouse establishment, whreh is tho largest in tho world, and whose charge embraces occun, lake and river lines of unequalled extent, steadily 1 usefulness to commercial and maritime interests. During the past year it has established 17 lighthouses ‘and 280 beacon lights on tho Western rivers, together with 21 buoys. The present number of aids to naviga- tion in the United States 18 622 lighthouses, 28 light- ships, 45 fog signals, 858 day beacons, 280 river lighta and 2,880 buoys. PUBLIC BUILDINGS, Tho condition of tho public butidings under the charge of the Supervising Architect, may be said to be generally satisfactory. The large amount of work im- posed upon that office reuders it impracticable to pro- ceed with the construction of all buildings authorized by law as rapidly as demanded by local communities in which they are respectively situated, and necesaarily dolays the beginmng of some. The suggestion of the Supervising Architect, touching the dosirability and ex- pediency of gausing’ plans tor public buildings to be prepared by architects whose whole time is not re- quired to be given to supervision of those already in process of construction, merits the attention and con- sideration of Congress. It is desirable that all buildings constructed for pub- lic use should be of the most durable matorial and con- veniently adapted (o the purposes.for which they aro designed. This can be best accomplished by bringing into requisition, by competitive meaus, the best archi- tectural talent of the country. It is therefore recommended that Congress make provision for carrying into effect the modilication indi- cated by the Supervising Architect 1m this regard. « Tho Reeretary repeats the suggestion of his last re- port, that the present is not a favorable time for mak- ing large appropriations for public buildings. CLAIMS FOR PIOCEEDS OY COTTON. In the report of December last reference wasemade to the action of the department in the disposition of claims for the proceeds of cotton, under the provisions of the fifth section of the act of May 18, 4872. The rule of decision therem stated his been strictly adhered to, and all claims have been rejected which did not appear, from satisfactory evidence, to come within the plain letter of the statute, Tho number of claitos filed under this act was 1,936, which have been acted on as follows Allowed. rete. Rejec'ed Distnissed for want of juri Under examination The amount paid out on is $180,358 43. ‘The claims now ander examination will be disposed of ina short time, Upon their decision all proceedings under tho act will be Gnally closed. ~ The following table contains a summary statemont of the proceeds of captured and abandoned property c erod Into the Treasury, and the amounts that bave been awarded and paid therefrom under tho several acts of gress :—~ Proceeds of captured and abandoned prop- erty covered tuto the Treasury. Awarded to claimants by Court of Clatus under the act of March 12, 1863....$11,348,147 73 Paid to claimants by the Secretary of the Treasury under the act of May 18, isdiction $20,910,056 44 1873... : 180,358 4 Phia on judgments agains’ Treasury agents under the act of July 27, 1868. . 89,188 1% Paid under various relief acts of Congresa.. ++ 228,250 81 Diabursea for expense under joint resolution of Marek 30, 1863, +. 75,000 00 11,871,045 14 Total... tte tee Which, deducted from the total amoant received a8 above, jeaves a balance of.. $9,039,611 30 Tho Secretary expresses the opinion that the state of the law relating to the examipdtion and payment of certain classes of claims against the govornment should receive tie attention of Comgress. As a parual remedy for existing evils itts regommended that claims be barred if not presented within a spociticd time, REPORTS OF BUREAU OFFICERS, The reports of the heads of bureaus are herewith transmitied, and referred to as gontaining statements and information of the business of the department more in detail than could ny be embodied in this report, The Secreiary gr ly acknowledges bis i debtedness to the officers of the department ge: for the zeal and fidelity with which they have di charged their duties, B. H. BRISTOW, Secretary of the Treasury. To rx Moxoran.e THR Srxaxex oF TUR House oF ReRKSENTATIVES, . INTERNATIONAL OCEAN TELEGRAPH ‘ COMPANY. Tho Intornational Ocewn Telegraph Company met yesterday afternoon inthe office of the president, im the Western Union building, After discussing some matters pertaining to the financial status of the con. vern, and consilering cortain plans bearing upon its future inanagement, it was dotermincd to calh a meet. ing of the directors to-day and to submit to them various proposals regarding the conduct of busiess aifairs, Tt was also agreed (0 suggest ty them the pro. Pricty of their deciaring the usual quart®rly divitead uf two ver cont o@ the loth of January wey