The New York Herald Newspaper, November 28, 1878, Page 8

8 ° NEW YORK HERALD, THURSDAY, NOVEMBER 28, 1878.-TRIPLE SHEET. THE INTERIOR DEPARTMENT Annual Report of the Seeretary to the President. ————_A___. A REVIEW OF THE INDIAN SYSTEM Progress of the Aborigines j Toward Civilization. RECENT OUTBREAKS AND THEIR CAUSES. Necessity for the Preservation of Our Forests. THE RAILROADS AND PUBLIC LANDS. WasuIne@ton, Nov. 27, 1878, The Secretary of the Interior begins his annual *report to the President this year with a reference to ‘the plan of “Indian policy” sketched by him in his last annual report, the principal points of which were the following First—The permanent location of the Indians on 4 smaller number of reservations, containing a fair pro- Portion of urabie and pasture lands. , ‘Second—Encouragement of agricultural and pastoral pursuits by the furnishing of agricultural implements and domestic animals and proper instructions by practical farmers. Third—The gradual allotment of small tracts of Iand to the heads of families to be held in severalty .Under proper restrictions. Fourth—The discouragement of hunting, proper re- strictions as to the possession of arms and amunition by the Indians and a gradual exchange of ponies for cattle. Fifth—The extension of the laws of the United Btates over Indian reservations to be enforced by proper tribunals, and the organization of the Indian police, Sizth—The labor of white men on Indian reserva- tions, as much as possible, to be dispensed with, and proper discrimination to be made in the distribution of supplies and annuity goods, and the granting of davors ween Indiaus who work and those who live ms idk yabonds, Seventh—The establishment of schools for the in- struction of Indian children in the English language, the elementary branches of knowledge, and especially in practical work. i@uth—Sufficient provision for the wants of the Indians until they become self-supporting. SUCCESS OF THE PLAN, Secretary Schurz proceeds to say:— ‘Chis plan, put forth withont any pretension to novelty, seeined to meet with general approval as far as public opinion expressed itself, and I firmly be- lieve that its exeention, if properly aided by Con- gress and not interfered with by the white popula- tion of the Western States and Territories, would, in course of bring forth satisfactory “re- sults. Considerable progress has been made in ‘the execution of the plan above stated, as far as it depends on the action of this department and the officers under its direction. ‘The consolidation of anumber of agencies has been undertaken with a view to a better location of the Indians, which will at the same time simplify the service, render a more efficient supervision possible, Teduce’ the expenses of the government and jessen the opportunities for frand and peculation. As far as the appropriations made by Congress would rmit agricultural implements and domestic cattle ve been furnished to Indian tribes, to set the Indians to work for their own support arid to en- courage industrious habits. An Tndien Police has Deen organized at twenty-two agencies and from all of them favorable reports as to the working of the new system have been received. The labor ot white men on Indian reservations has as much 4s possible been supplanted by Indian labor. Instructions have been given to discriminate in the distribution of supplies and annuities which are hot actual necessaries, against individual In- dns who show no disposition to work, thus discouraging idleness. Permission to send out hunting parties has been given only where without hunting the Indians would have been ‘exposed to want. ‘The rapid disappearance of game, however, in mauy parts of the Western country ‘will very soon stop this source of sustenance. The allotment ot land among the Indians on several reser- ‘vations bas been ortiered and is in progress. The facili- ties of education bave been extended as much as pos- sible, and proper directions have been given for the Instruction of Indian children in practical pursnits. Fifty Indian children, boys and girls, selected from different tribes, have been taken to the Hampton Nor- mal and Agricultural Institute, in Virginia, where they will receive an elementary English education and thorough practical instruction in farming and other useful work, to be sent back to their tribes after the completed course. Captain Pratt, who ‘was intrusted with the selection of these children, and who performed his task in = véry satisfactory ananner, reports that @ continually increasing inter- est in education is shown by the Indians, and that they would have sent thousands of children with him ad he been able to receive them. The result of this interesting experunent, if favorable, may be destined to become an important facvor in the advancement of civilization among the Indians. BEORGANIZATION OF THR SERVICE. The Indian service has been reorganized in several ‘Of its branches. First—Lt was found necessary to remove @ number of agents on aceount of improper practices or lack of business efficiency, and great care has been taken in filling their places’ with new men. Where mistakes ‘were found to have been made in the new selections they have been promptly rectified. Important chenges have been mude in the contract sys- tem and in the methods of accountability. An active supervision has been exercised by inspec- tors and special agents, the detection of fraud has ‘Deen followe vigorous prosecution, and, on the ‘whole, I feel enabled to say that the character of the service has been raised in point of integrity and efficiency. Iam, however, far from pretending that the present comdition of Indian affairs is what Jt ought to be. The experience gained in an earnest effort to overcorue difficulties and to correct abuses has enabled ine to appreciate more clearly the task still to be accomplished. In my last annual report L stated frankly, and I have to repeat now, that in pur- suing 4 policy ever #0 wiso, and with’ s machinery ever 0 efficent, gradual improvement can be effected only bry pagient, energetic and well-directed work in detail, An entirely satisfactory state of things can be brought about only under circum- stances, which are not and cannot be under the con- trol of the Indian service alone. If the recurrence of trouble and dis*urbance is to be avoided, the appro- riations made by Congress for the support ot the ndians, who are not self-supporting, must be liberal enough to be suflicient for that purpose, aud they must be made early enough in the year to render the purchase and delivery of new supplies possible before the old supplies are exhausted. Second—he Indian service should have at its dis- posal a sulle: countability mt fund to be used, wita proper ac- t discrotion in unforeseen emergencies. IACHMENTS OF WHITH MEN. citizens of Western States and Territo- k Third—The tories must be made to understand that, if the Indians are to cease to be troublesome Peupers and yagabonds, are to become or- derly and self-supporting, they must have lands fit for agriculture and pasture; that on such Junds they must be permitted to reign and establish permauent homes, and that such a result caunot be attained if phe white people insist upon taking from ‘ore or trickory every acre of ground that is anything. The first two things can be aecom- pis appropriate action on the part of Cougress#, The difficulties growing out of the continually repeated encrowhments by the white poopie on the rights of the Indians may be jessened by the concentration of the Indians on ler number of reservations, but they can be entirely avoided even then only by the most etic enfo tof the law on the part of the general and local governments. To this end it beetus desir that the Southwestern tribes, whose present reservations appear insecure or otherwise un- suitable for their permanent settiement, should be gradually removed to the Indian Territory, The eli- mate of the Indian ‘Territory is congenial to them, while it has proved anwholesome to the Northern In- itians who were located there. The Northwestern tribes will, in the course of time, have to be concen- grated in similar manner on a few reservations east of the Rocky Mountains and on the Pacitic slope. NDIAN POLICK RECOMMENDED. fo keep the Indians on their reservation and pre- went disturbance and conflicts the Commis- sioner of Indian Affairs recommenda the or- ganization of mounted body of “Indian Suxiliaries,” to be drawn from the young men of the various tribes and to » under th smmand of the military authorities wendation, listed in such an organization, paid by ment, will be withdrawn from the fighting nt ot the indian tribes and be disciplined in the ser- vice of peace and order. It is a matter of erience that Indians #0 employed can as to loyal. fidelity t But the principa promoted by; ueasures alone. froaucing among the Indiaas the habite o pations of civilized lite, by inducing them to work for their own support, by encouraging the pride of the dndividual ownership of property and by edu- euting the young generation, and no efforts should be “spared to bring to bear upon ¢@hem the proper moral influences in that di- fection. Such efforts should not be sneered at as muere sentimental fancies, nor should they be discour- aged by the assertion that success is impossible, The advance made by some Lndian tribes is suflicient proof that @ similar advence may be made by others, What Jever may Ve accomplished by the employment of force, it is certain that only as the Indians progress in the way of civilization they will cease to be a trou- blesome and disturbing element. : ‘THE SIOUX. ‘The Secretary next submits some remarks con- cerning several tribes whose conduct and condition are of special interest, noting first the Sioux. He describes the negotiations and circumstances which led to the removal of the Red Clouds and Spotted ‘Tails to their present reservations, and reports that the Sioux so far have given evidence of a loyal spirit, and that the ramors current for some time of a disposition on their part to break out in hostilities proved entirely unfounded. He also says that great difticulty was encountered in sending supplies from Missouri River to the new agencies, in consequence of a combination of transportation contractors to force the government to pay exorbitant prices. Their bids were rejected, and the organization of wagon trains to be manned by In- dians, with their ponies, was proceeded with, the same experiment haying been tried on a large seale at another agency at an earlier period this year and having proved successful. ‘The task to be performed by these wagon trains between the Mis- souri River and the Sioux agencies was a much larger and more difficult one owing to the character of the country and the circumstance that the grass has been burned off the plains between the Missouri River and the new agencies, as rumor has it, by evil dis- posed persons to bring about the failure of this ex- periment; but it has so far been successfully accom- plished, and it is believed that the new Sioux agencies will be sufliciently supplied during the winter season in that way. The peaceful conduct of the Sioux during this year seems to justify the best hopes for the future. THE BANNOCK OUTBREAK. In regard to the outbreak of the Bannocks last spring Secretary Schurz says:— It must be admitted that they were insufficiently supplied with food, which, however, was owing to an appropriation of money by Congress utterly in- adequate to their wants. deg: wa those Indians had supplied themselves in part by hunting, but in consequence of the Nez Perce war they were kept on their reservation in order to avoid greater disorders, Thus they were deprived of that re- source, ond the moncy available for feeding them amounted only to less than four and one half cents a head per day. ‘This created discontent among them. Then a murder of a white man was com- mitted by an Indian. The Indian was arrested, tried and hanged. The discontent grew into excitement. A military detatchment attempted to disarm them, but with only partial success, and finally the events took place Which appear in Commissioner Hayt’s report in aseries of despatches and letters, giving a full and circumstantial account of the causes, progress and incidents of the trouble. To this account I would respectfully call your attention. As regards the outbreak of 300 Northern Cheyennes the Secretary corroborates the statements heretofore made by the Commissioner of Indian Affairs in the special report on this subject, showing that it was of the government officials to furnish them supplies according to treaty, but that on the contrary they received ample supplies, and more than they were entitled to, Secretary Schurz adds:— While in many other instances Indian outbreaks are traceable to the treatment they receive at the hands of the whites it appears from the information quoted that in this case the outbreak was owing to the mischievous spirit of bad men among the Indians themselves and their determination to return north- ward to their old bunti grounds. Nearly all of these runaway Cheyennes have been captured or have surrendered, aud are now held as prisoners by the military authorities. In the interest of general dis- cipline, and in order to show the Indians that noth- ing can be gained by such disorderiy conduct, it is thonght best to return them to their reservation in the Indian territory, after having given the civil authorities of the State of Kansas an opportunity to identify those who committed murders and other crimes while passing through that State, so that they may be dealt with according to law. ‘The Secretary states that final action concerning the purchase of part of the reservation of the Utes in Colorado and their settlements upon White River is deferred to await the report of the commission ap- pointed to negotiate with them. He recommends the removal of the Pimas and Maricopa Indians of Ari- zona to the Indian Territory, in consequence of the diversion for mining purposes of the water of the Gila River, without which they cannot cultivate their lands, ‘TIMBER LANDS. Secretary Schurz next devotes considerable space to the subject of timber lands. Referring to the meas- ures taken by the department for the suppression of timber depredations upon the government lands he say! It was to be that they would meet with stubborn opposition on the part of lumber- men snd others directly or indirect; ested in those depredations. Here and there the ot the special agents of the department were complained of as opprersive and otherwise improper, and in every instgnce careful in- quiries into the facts were instituted.’ Such inquir- ies resulted almost uniformly in the vindication of the agents employed. ‘When it was found that private property had been seized, together with timber unlaw- fully taken from the public lands, or with lumber manntactured from them, which was some- times unavoidable, prompt restitution was ordered. An officer of the jury Department detailed for that purpose was sent to the State of Louisiana, where charges of improper practices on the part of our timber agents had been preferred with par- ticular urgency. The elaborate report rendered by that officer not only justifies the conduct of the agent of this department employed in that State, who, while in the discharge of his duty, fell a victim to the yellow fever, but it puta the extent of the depredations committed there and the necessity of their suppression in the clearest light. Complaint was also made that our efforts to arrest-the wanton destruction of the forests in some of the mountainous territories of the Northwest had inflicted great hardship upon thé settlers there. But there is information in posseasion of this depart- ment showing that no such hardships resulted from the measures taken; that the price of firewood remained the same; that the settlers were not hindered in providing for their actual necessities, and that the measures of the department were directed only against a class of = who made the unlaw- tal ‘aking and selling of timber from the public lands in large quantities » regular business and & source of profit to themselves. In several States, expe- cially in the South, the local authorities were resorted to by interested parties for the parpose of hampering and ing the offorts of this department, by a variety of expedients, in some instances not without effect. In’ spite ot these difficulties, it may be said that in some parts of the country at least, the depredations on timber lands of the United States have already been greatly limited in extent; but we cannot close our eyes to the Tact that anything like complete success in suppressing the unlawful practices is impossible unless the efforts made by this department for the protection ot the Faye gg ag iieet with hearty co-operation ou the part of the legislative branch of the government. Actual experience enables me to say that the want of such eo-peration has been and will always be an en- couragement to the depredators to persist in their lawless operations and to defy the authorities. BAD EFFECT OF DESTROYING VorE#rs. Secretary Schurz expresses his opinion that the disastrous consequences which always follow the destraction of the forests of a country will inevit- ably come upon us in a comparatively short period of time, considering the rapidity with which the timber growth of ‘this country is being swept away, unless legislation be enacted to arrest this indiseriminate spoliation, To that end he earnestly renews his recommendation for the passage of a bill, already introduced in Con- gress at his suggestion, which provides that all tim- ber bearing lands, chiefly valuable for the timber upon them, shall be withdrawn from sale, or other disposition under existing Jaws, and be held by the government with # view to prevent- ing indiscriminate destruction and waste and to the preservation of the young timber and the repro- duction of the forests. The bill, he says, provides inter- ample means by which settlers on the pub lic lands and miners can procure tim- ber and firewood to supply their wanta, with or without the soil, at minimum rates, It also provides for the sale of timber at reasonable prices for mannfacturing purposes and for export, and for the appointment of # mumber of officers to execute its provisions under the direction of the In- terior Department. In the further discussion of this subject the Secretary remarks :— The traditions of a time are still alive when the arca covered with virgin forest in this country was so great that the setter might consider the trees on the land he oceupied as a mere difficulty, to be | overcome and to be swept out of his way. But cir. | cumstances have very materially ebanged. We are | now rapidly approaching the day when the forests of | this country will no longer be sufficient to supply | our home wants, and it ie high time that the old notion that the tim on the public lands belong to anybody and everybody, to be taken off at pleasure, should give way. A provident policy having our tu- wants in view cannot be adopted too soon, 'y year's loss intlicts upon the economical inter- of this country an injury which in every part of the country will ‘be seriously felt, but in the mountamous regions threatens to become cepecially disastrous and absolutely irrepara- ble. We ought to learn something from the calamitous experiences of other parts of the world, if the necessity of such @ provident policy be not recognized while it is time, the } Beglect wild be painfully appreciated when dt is too not caused by hunger or by any neglect on the part‘ late. Tam so deeply impressed with the importance of this subject that, as loag as I remain intrusted with my present duties, I shall never cease to urge it upon the attention of Congress, ‘The Secretary reviews the provisions of the two bills of a local character enacted at the last session of Congress, ‘authorizing the citizens of Colorado, Nevada and the Territories to remove timber from the public domain for mining and domestic pur- poses,” and “for the sale of timber lands in Cali- fornia, Oregon and Washington Territory,” and concurs in the opinion of the Commissioner of the General Land Office that these two acts are more cal- culated to hasten the destruction of the forests in the Stutes and ‘Zerritories named thgn to secure their preservation. He therefore recommends the repeal of these laws, leaving their objects to be provided for by a general law, as above indicated, RAILROAD MATTERS. The report contains a large amount of statistical mutter, showing the business condition of the vari- ous railways which have received land or money sub- sidies from the government, The practical utility of the new law creating the Bureau of Railroad Ac- counts is declared to be already proven, and the pub- lished recommendations of the Auditor in regard to legislation are commended as worthy of cousidera- tion, The Secretary says:— It will be seen from appendix C of the Auditor's re- ort that about 196,424,800 acres of land have Fees: ‘grutited’ tes: Saheatay murposes, of which to June 30, 1878, 31,014,4% acres were pat- ented, The acts of Congress making these large grants were passed with conditions intended in a measure to repay the people for such valuable dona- tions, but until the passage of the act creating the Bureau of the Auditor of Railroad Accounts, the gov- ernment had no certain way of ascertaining whether these conditions were complied with, nor was it pos- sible to kuow what they were worth. The suit of the Kansas Pacific Railway et al, vs. the Union Pacific Railroad Compan; tuted January 21, 1875, in the United States Circuit Court of the District of Nebraska (commonly known as the pro rate casc) has becn deter- mined. In view of this fact aud the fact that legislation bearing upon this question is now pending in Congress, and that much complaint continues to be made against the Union Pacitic Iuil- road Company for non-compliance with the require- ments of law in this respect, it is hoped that the whole subject will receive early consideration by Congress, 0 that some final settlement of these difll- culties may be had. PENSIONS. The recommendation of the Commissioner of Pen-' sions that medical examinations be conducted by medical corps of surgeons, to be assigned by districts throughout the country, and assisted by competent clerks, instead of under the present unwieldy and un- reliable system, is brought to the attention of Con- gress for favorable consideration, together with sev- eral other recommendations of Commissioner Bentley. PATENT OFFICE, The necessity of providing additional room for the work of the Patent Office is pointed out, and a hearty indorsement is given to the Patent Commissioner’s plea for liberal appropriations with which to purchase books of reference to prepare complete digests of United States patents. The Secretary says:— As the office yields a handsome revenue over and above all its expenditures, it would appear but simple justice to the inventors who contribute to this reve- nue that a portion of the surplus should be yearly appropriated for the improvement of its scientific library, and for the 2ppropriation of such digests of patents as will facilitate the work of examination and make its results more accurate and available. ‘THE COMING CENSUS. Attention is invited to the advisibility of prompt action by Congress in regard to the coming census. If the additional legislation which seems to be required to secure statistical results commensurate with the expense of enumeration shall be put over to the first regular session of the Forty-fifth Congress it must suffer inadequate consideration and hasty ac- tion, while the postponement of ‘the initial prepara- tions to so late a date will inevitably enhance the cost of the census and impair the value of the returns, Secretary Schurz also says:— If the department is to remain uncertain whether the census is to be taken under the act of 1850 or un- der a new law till the February of the census year, as was the case in 1870, the work must suffer, both through enhanced cost and through impaired value. The tow of May 23, 1850, was passed in the very infancy of statistical science. In the period that has intervened the demands of Congress and the country for’ statistical information have greatly increased, and new schedules and new inquiries are needed to satisfy those demands. As a census of a great nation is @ very practical work, into which theory and preconceived notions should enter as little as possible, it would seem that such great changes of condition, a8 well as the advances made meanwhile in the science of legislation and in the art of govern- ment, justify and require a new census law. OTHER RECOMMENDATIONS, Among the remaining recommendations of the re- port is one for the speedy enactment of the provi- sions for the continuance of the Hot Springs Com- mission, which passed both houses last session, but failed to receive the President's signature because of a clerical error in the engrossment of the bill. ‘The restoration and reconstruction of the Interior Department Building, at an estimated cost of $973,931, in accordance with the accepted plans of Architect Vrydagh, of Indians, is recommended, and the nope is expressed that Congress will at an early day make the needed appropriation to commence the work. ‘The report also contains, among other matters not above indicated, » series of synopses of the special reports furnished, under special instructions of the department, by the Governors of the various Terri- tories, setting forth their natural resources and their respective attractions for emigrants. THE TREASURY. ANNUAL REPORT OF TREASURER GILFITLIAN— RESOURCES IN COIN AND CUBRRENCY—OPEBA- TION OF THE RESUMPIION ACT—NATIONAL BANK REDEMPTION, WASHINGTON, Nov. 27, 1878, The annual report of United States Treasurer Gil- fillian to the Secretary of the Treasury shows thatthe total resources in coin and currency were :— On September 30, 1876. On September 30, 1877... On September 30, 1878. He says the coin resources have steadily increased from $67,586,705 95, on the above date in 1876, to $139,585,072 24 in 1877, and to $234,007,574 59 in 1878; that there has been little change im the currency assets, except that they were larger in amount on tho above date in 1877 on account of the failure of the appropriation for the military establishment, in the second session of the Forty-fourth Congress, which necessitated the withholding of payments to that branch of the ser- vice until the assembling of the Forty-fifth Congress, in special session, in October, 1877. The total amount of unavailable moneys carried in the balances of the accounts, kept in the Treasurer’s office, was $3,042 61 less in 1878 than in 1877. OPERATION OF THE RESUMPTION Act. Under the n of the resumption act of 1875 providing for the retirement of legal tender notes equal to eighty r cont of national bank notes issued, the aggregate amount retired from 1875 to 1978 in $55,318,964. At the time of the passage of the act, May, 1878, forbidding the further retirement of legal tender notes, action under the former act ceased, leaving the amount of leyal tender notes out- standing at that time $346,541,016, at which volume “—. pam of legal tende ‘be aggregate amoun' tender notes in cir- ion June 30, 187 $359, 764,932 and $546,031,016 respectively pent of legal tenders Guring the fiseal yeer of 1876 was $15,083,516, ‘The destructions were made monthly from notes sent in for redemption by the public, which were held untibthey equaled eighty per cent of the national eur rency issued during the month and then de: lires United States notes is kept on haud at all times. the notes delivered to this office daily by the Bur Engraving and Printing are deposited in thisfund and charged to it at the time of delivery, and an amount equal to each day’s redemptions of United States notes is each day taken from the reserve fund and issued, thus Roeping the volume outstanding at the amount required by law. ‘Thig fund is kept from all other mouey in the vault by itself, and is im the custody of two officers, each having a combina tion unknown to the other, Referring to the standard silver dollars, the Treas- urer, after stating the amount issued since the act of Congress of February 28, 1878, and the Limited amount in circulation, says:— Whenever it is permissible to exchange these coins for United States notes under the provision of ¢ law which authorizes the paysent of transportation charges thereon from the silver profit fund, they cam be distributed very rapidly. There is a demand for them in many portions of the country where, from the locality, it is not possible that they are desired for any other purposes than for circulation in exchange for Paper currency. At present, howe: sent only to depositary banks and the ‘Treasury, and are used in payment : ond in payment to express o panies on account of their charges for transportation of the coin. The largest payments of silver dollars have been made at New York and San Francisco, Int the goine issued at those points immediately | ona their way back to the ‘Treasury vaults, either as receipts from customs or as deposits on ae- count of silver certificates, or iu payment of subserip- tion to the four per cent loan. ‘The Treasurer states that on October 31 last there | Were $14,859,877 of this coin on hand and $4,922,623 outstanding. The aggregate amount sent ‘to de- positary and other nate is $3,374,995, + SILVER CERTIFICATES. The third section of the act above mentioned au- thorized the issue of silver certificates, which were ‘upon tiie passage of the act prepared for issue ut this office and at the offices of the assistant treasurers in in New York and San Francisco, in denominations of from $10 to $1,000, ‘The total amount issued to date is $5,575,730; at Washington, $461,000; at New York, 346,000 aud at San Francisco, $7,768,400, ‘There is, however, in circuletion but $1,577,330, the remainder having been paid into the Treasury through the custom houses, and not reissued. The certificates issued at San Francisco found their way at once to the New York Custom House. There is no demand tor silver certificates in exchange for silver, except at points where silver bullion is purchased by the de- partment to be paid for i standard silver dotiare. FRACTIONAL SILVER, ‘The substitution of fractional silver coin for frac- tional currency has progressed during the year, though not with the rapidity of the former year. ‘The amount of fractional currency redeemed since June 30, 1977, is $4,191,094 15. Of this amount, however, $1,115,526 19 during the present calendar year was redeetued in United States notes, The total amouut of fractional currency redeemed under the operation of the act of Congress approved April 17, 1876, to Oc- tober 30, 1878, was $25,207,539 29, Since April 14, 1876, there has been issued of fractional silver coin $39,783,166, and, though the coinage has been suspended temporarily, there is still a demand, which is supplied from the stock on hand in this office and in the mints, which, together with that in other offices, amounts at this time to $6,067,960 1%, The amount paid out since June 30, 1877, to date, is $6,542,893. The amount of fractional silver paid out, at the several offices of the Treasury, from April 18, 1876, to October 31, 1878, amounted to $39,728,166, Ea NATIONAL BANK REDEMPTION. The operations of the National Bank Redemption Agency for the fiseal year again show an increased amount of work performed at a reduced expense. The number of national bank notes redeemed, assorted and charged to the banks of issue was 22,927,342, an increase of 182,294 over the num assorted in the preceding fiscal year. ‘The expenses of assortment, under which head are included all of the expenses of re- demption with the exception of the charges for trans- portation, on the other hand, decreased from $167,704 U5 to $14,521 88, a diminution of $23,182 17, or nearly fourteen per cent. A saving was effected in evdry item of expense @s compared with the preced ing year. The outstanding circulation of the national banks at the close of the fiscal year was $324,514,234. ‘The cost of redemption, when computed upon ‘this amount, was considerably less than one-tenth of one per cent, or less than $90 per annum for a bank of 90,090 circulution. When weighed against the advan- tages flowing trom a prompt and effectual system of redemption this expense is scareely worthy of con- sideration. The actual legal tender reserve required to be maiuitained in circulation ranged from six per cent for country bunks to twenty-five per cent for banks in the city of New York, with interest at six per cent per annum. Of $210,390,437 56 in bank notes reccived for redemp- tion, $80,527,000, or 38.26 per cent., was received from the city of Boston, and $66,273,000, or 31.48 per cent, from the city of New York, nearly seventy per cent of the entire redemption having been receivéd from these two cities. RECEIVED FROM NATIONAL BANKS. Under section 5,214 0f the Revised Statutes there hhas been assessed and collected by the Treasurer from national banks since 1864, at an expense of not more than one-tenth of one per cent, as follc On circulation On deposits On capital... MOM tees acer siatear a 36,045,771 11 ‘The highest amount of duty on circulation was re- ceived for the six months ended December 31, 1873, being $1,704,902 76. In the last six months it was $1,492,224 57. The highest amount of duty on de- is was received for the six months ended mber 31, 1875, being In the last six months it was $1, The highest amount of duty on was received for the six months ended December 31, 1876, being $341,986 96. In the last six months it was $266,023 34. ‘The total amount collected on the three items for the six months ended June 30, 1878, was $3,379,252 07. In concluding his report Mr. Gilfillan speaks in complimentary terms of his subordinates, and says that with very few exceptions they have performed their duties faithful; INTERNAL REVENUE. ANNUAL REPORT OF THE COMMISSIONEB—TROU- BLES IN THE SOUTHERN STATES—OPPOSITION TO THE REDUCTION OF TAX ON TOBACCO— COMPARATIVE STATEMENT OF COLLECTORS. Wasnincton, Noy. 27, 1878. ‘The Internal Revenue Commissioner in his annual report states that the heavy falling off in the receipts for internal revenue taxation which marked the closing months of the past fiscal year hus ceased, and that the receipts for the current fiscal year have thus far shown an increase, He is able'to report that in a majority of the States the internal revenue laws have been enforced with- out serious difficulty or obstruction, There has been a commendable spirit exhibited on the pari of manufacturers and dealers to observe the law, and it is believed that the tax on distilled spirits is now being collected with fewer frauds and less loss to the government than at any time since the estab- lishment of the internal revenue system. In the majority of districts prosecutions for violations of the internal revenue laws have been reduced to a minimum in consequence of the steady enforcement of the laws and a state of public opinion favorable to their observance and enforcement. In other dis- tricts, however, it has been found necessary greatly to multiply prosecutions for violations of the inter- nal revenue laws and to institute vigorous and sys- tematic efforts for the suppression of frauds. ‘TROUBLES IN THE SOUTHERN STATES. The Commissioner says :— “Tt is with extreme regret I find it my duty to re port the great difficulties that have been and still are encountered in many of the Southern States in the enforcement of the laws. In the mountain regions ot West Virginia, Virginia, Kentucky, Tennessee, lina, South Carolina, Georgia and Alabama, ¢ portions of Missouri, Arkansas and Texas, the illicit manufacture of spirits ha» been carried oa for a number of years, and Lam satisfied that the an- nual loss to the os ernment from this source has been very nearly if not quite equal .to the annual ap- propristion for the collection of tie internal revenue tax throughout the whole country, In the regions of country named there e known to exist about five thousand copper stills, many of which at certain times are lawfully used in the production of brandy from apples and ches; but Lam convineed that a large portion of these stills hove been and are used in the illicit manutacture of spirits, Part of the spirits thus pro- duced has been consumed in the immediate neighborhood; the balance has Leen distributed and sold throughout the adjacent districts, This nefarious business has been carried on, as a rule, by a determined set of inen, who, in their various neigh- borhoods, bee together for defence against the officers of the law, and at a given signal are ready to come together with arms in their hands to drive the officers of the internal revenue out of thecountry.” Great stress is laid upon the necessity for the com plete suppression of illicit distilling, aud the subject is to be bronght prominently to the attention of Cou- gress, with the hope that a suitable appropriation for the carly suppression of these trauds may be made, THR TORACCO TAX, With reference to the proposed reduction of the tobacco tax (he Commissioner argues that the reduc- tion of the tax one-third, a8 proposed by the bill now pending, would inevitably rewutt in a corresponding reduction of the revenue derived from -that source, and this has reference to the proposition in fovor of @ reduction of the tax that a reduction thereof will not result in a decrease of the revenue from this ve, but by stimulating consumption would ulti- y increase the receipts, Referring to another argument in favor of reduc euch taxation to the effect thatthe present rate of taxation depresses the value of leaf tobacco in the hands of the producers and that the proposed reduction ot the rate of taxation will inure to their benefit by enhancing the market value of their products, Commissioner Raum states that an examination of the market quotations of tobacco for rs fails to show that the tax on mann. fac market price of leaf tobacco. He shows by a table in another part of his report that the business of manu. facturing tobacco hes year by year increased; that it is now diffused throughout the whole United States, and that some of the largest manttfactories &re located at great distances from the source of supply of the leaf. So it will be seen that there must be aconstant competition among manufectug- ers tor the purchase of the various choice grades of loaf tobacco that are used in the production of the reat variety of brands of manufactured tobacco, and Ftail to « muprehend how this one would be increased Ey a reduction of the rate of taxation the manufwtured article, The tastes of the people would not be changed by legislation, and the manufacturers would, there- fore, continue to seek fur stocks of tobacco suited to the ‘demands of their customers, Tt must be borne in inind that fully three-fifths of the entire crop of tobacco grown in the United States is exported, and it is obvious that the price received for this surplus practically controls the price of the tobacco retained for home consnmptio on SURPLUS STOCK ON HAND. A statement iuciuded in the report shows that there were 169,761 hogsheads of tobacco In warehouse on the Ist of the present month, against 89,006 hogsheads for the correspouding period of 1875. It to the depressing influence this large surplus stock must exert there t# now added a prolonged agitetion for the reduction of the tax, #0 as to withdraw the manufactnres from the juacket, the result to the planters caunot be other- wise than detrimental. It may be insisted that ship- ping leaf is nusnited for mannfacturing purposes, and that, theretore, its price wou!d have no muaterial etfect upon the ‘valite of the manufacturing leaf, This statement, however, — would be fallacious, for it is an ascertained fact that the tastes of the people vary so much that to produce manufactured tobacco to meet all demands: manufacturers are compelled to draw their stocks from all portions of the country. Not only are the light tobaceos of Virginia and North Caroliua and the red tobaccos of Kentucky in request for manu- facturing purposes, but tobaccos grown in ‘Lennessee, Missouri, Minois, Indiana and Ohio enter largely into the muanutactured tobacco of this country, so that in fact all the various grades of to- bacco growa_yo to make up the stocks whieh mant- facturers tind it necess: o use in orler to meet the wants of their customers. It is therefore obvious that the price of the tobacco used by our manu. facturers is affected by the foreign demand for the surplus product. A small accumu. lated surplus, hight crops and an_ «active foreign demand will increase the price of all grades, while large accumulated stocks, heavy crops and @ sluggish foreism demand wil! result in’ a depression of prices of all grades, and these results would be produced, whether the tax on manufactured tobacco remained at twenty-four cents or should be reduced to sixteen cents per pound, or if the tax were entirely removed, OPPOSITION TO REDUCTION. ‘The bill before the Senate propoxes a reduction of the tax on cigars from $6 to $5 per thousand. ‘This wouid be equivalent to reducing the tax on each cigar one imill, It is incredible that such a reduc- tion can affect the retail price or in any degree operate to stimulate the consumption of cigars, and in my opinion the reduction would be an absolute loss of revenue without any compensating advuntrge. It is to be noted that the agitation for the reduction of the tax on manufac- tured tobacco does not come from the consumers, wihto alone puy the tux. Not a single taxpayer hae yet come torward’as such to demand its reduction. The whole movement, in my judgment, involves an absolute sacrifice of $11,000,000 of revenue, without reasonuble prospect of benefit to the producer or relief to the taxpayer. EBPECT OF THE AGITATION, The agitation of the question of reducing the tax on manutactured tobacco last year puralyzed the trade during the time the uncertainty prevailed. Many manutacturers were — com pelled to temporarily suspend operations and large numbers of ‘ workpeople were thrown out of employment. Tho tax on manufactured to- bacco from December, 1877, to June, 1878, showed a fulting off, as compared with the covresponding months of the preceding year, of $1,947,0t1, while, immediately npon the adjournment of Congress, when it became known that the tax would for a time remain undisturbed, the trade began to recover, the receipts from the tobacco tax for July, 1878, showing an increase of $546,427 over the correspondiiy month of the previous year, IL have no dyubt that similar results would follow a pro- longed agitation of the subject this year, It therefore appears to be very desirable that whatever action is had by Congress In regard to the proposed change of the tax should be had as early as possible, in the in- terest of the revenue as well as of the manufacturers, their thousands of employés and the producers, to all of whom continued suspense must prove in- jurious. COLLECTIONS, A statement of the collections of internal revenue tax, by districts, for the fiseal year ended June 30, 1978, shows that the sum of 3110,654,280 86 was col- lected and accounted for during the past fiscal year, and that the sum of $9,705 55 remains unaccounted for.. During the first ar ended June 30, 1877, the internal revenue collections were $118,995,184 25, ‘There remains unaccounted for that period the sum of $1,000. It thus appears that dur- ing the lust two fiscal years the sum of $29,649,405 11 has been collected and accounted for and the sum of $11,605 55 has been collected and not. accounted for. Each item making up this last amount has been reported to the First Comptroller for suit. The Commissioner is aesured that the amounts due will be paid during the present year, the sureties of the collectors’ bonds being entirely good, so that there will be no actual loss to the United States. The total cost of collecting intcryal revenue in the United States for the fxeal year ended June 30, 1878, was $4,056,910, being less than 3°% per cent upon the whole amount collected. The Commissioner thinks that the revenue for the present fiscal year, if the rate of taxation is not disturbed, will not fall short of $115,000,000, The report euds with a statement showing the re- ceipts from the several objects of taxation for the first four months of the present fiscal year, as compared with the same period of the last fiscal year. This shows a@ decrease of $393,513 on spirits; an in- crease of $272,246 on tobacco; an increase of $846,204 on fermented: liquors; a decrease of $64,821 on banks and bankers; an increase of $194,736 on ad- hesive stamps; a decrease of $45,174 in the amount of penalties, and a decrease of $16,964 in the amount received for taxes on articles and occupations formerly taxed but now exempt. ‘The net increase of revenue has therefore been $545,427. FINE ARTS. GENERAL DI CESNOLA’S CONCLUDING LECTURE on “CYPRUS ¢ IfS ANCIENT ART AND HIS- ToRY.” ; On account of the bad weather there was a small audience assembled last evening at Chickering Hull to listen to the fourth and concluding lecture of the course by General di Cesnols on “Cyprus: Its An- cient Art and History.” On the platform with the lecturer were Baron Blanc, the Italian Minister, and John Taylor Johnston, the president of the Metro- politan Museum of Art. General Cesnola opened by stating that amid con- stant wars, with victory now on one side and now on the other, there were three turning points in the an- cient history of Cyprus—the first during the great Persian wars, when the. Greeks took the part of Cyprus; the second when Alexander included Cyprus in his Macedonian Kingdom, and the third when the Romans annexed the island. The first had been spoken of and the second was uninteresting. In the third, when the last king of the Ptolemaic dynasty be- ueathed the island to the Romans, Cato was the oflicer chosen by the Senate to proceed there, where he found much treasure, the result of the sale of which—about $1,000,000, then # great sum—was paid into the Roman Treasury. The first Governor Cyprus, when it was made # Roman colony, 55 B. C., was Lentelus, a friend of Cicero, who was suceceded by the latter, always a warm friend of the island, as Governor General of Cicilia and Administrator of Cyprus, During the time of peace under the Romans littie was known of the island, After the homans came the Byzantines, of whose rule little is also heard. ariously, during the lecturer's exhaustive ex- cavations the island yielded little or no architectural remains, A stele and the lid of a sarcophagus illus- trated in the programme were then described, and an account was given of how the treaqures at Curiuin were discovered, which probably formed part of the treasure of an ancient temple. Several of the objects found there were described in detail. The dates of these it waa difficult to describe. The de- signs ot hends of lions, snakes and gryphous on these ornaments were charins to ward off evil, and were used long atter the original idea was forgotten. Just as we now employ lions’ heads as water spouta, they formerly having been sup- posed to scare away animals from the water. The head of Medusa often was used on jewelry to charm away evil, Jewelry appears to have been worn in all ayes, and false jewelry was used in olden times as pow. Per- sonal ornaments seem to have been a mark of honor, as the signet rings of Koman ambassadors. Earrings, when worn by women, were signs of captivity, as were bracelets and anklets and ws the wedding ring+is now. The meaning ot the necklace was more like that of @ wreath, and they were originally made of leaves and flowers, whence many of the eurly'designs. The majority of the gold ornaments found at Curiam folated to a date of from 900 to 600 before Christ. oldest of the iri- descent glase vessels in the Museum of Art date about 750 to 800 B, The brilliancy of color avose from the decomposition of the glass, through damp- ness, Where aikalis aud acids prev: in the soil. At the close of his discourse the lecturer said a few words about the ancient religion of the island, the worship of Venus, which the Phoenicians introanced at a remote period, erecting many temples. The Grecks who came later and not the Pheenicians were responsible for the lascivious rites. Under the latter the goddess was worshipped ua the pure Venus, the moon goddess, and = under the former also as Venus Pandemos, properly symbolized by a ing, the protectress of ali sorts of immoralities, hese could hardly be con- ceived to be associate t with auy form of religion, but wo have only to took to Utah to see a repetition of | the orgies of Venus Pandemoy, of Cyprus. The Greeks, then in Cyprus, turned the worship of the goddess into one vast orgy and made the very namo of Cyprim stand for a synonymn for debeuch- ery and impurity, General Cesnola hoped in conclusion that he had awakened, as he certanly has, a more intelligent iuterest im the Cypriote art collections at the Metropolitan Museum, and that people will, as the late Mr. Bryant had said to hin, “feel more grateful to those few far sighted and generous New Yorkers who, with their private means, have endowed this metropolis with such art treasnres as will torever form the envy of the civ- jlized world.” DOCTORS’ WIDOWS AND ORPHANS. The thirty-sixth annual meeting of the New York Society for the Relief of Widows and Orphans of Medical Men was held yesterday afternoon at the New York Academy of Medicine, No, 12 West Thirty-tirat street, Dr. Jumes L. Banks, the president, in the chair, After the reading of the minntes the follow- ing officers were clected for the ensning year:—Presi- dent, Samuel @. Hubbard; @Wico Presidents, D Javed Lins! Dr. S&S 8. Purple and Dr, Isaae E, Taylor; ‘Creusurer, Dr. J. Hi Hinton, and the following Board ot Managerw to. ‘serve three yeurs:—Dra, James L. Banks, Gouvernenr M. Snith, J. Foater, 2. C. Finnell, A. R. Judson, I. F. Cook and J, W. Warner, Tho financial condition of the society (as audited) for the year ending Sep- shows thut the total one ans tember 17, 1878, amount to $12,172 45. ‘There was dis nuitants during the past year $4,302 7 numbers 137 members, of whom 100 are annual subscribers. The benefactors number vi, of whom two are laymen, The beneficiaries dur- ing the year were 12 wido and 4 children of de- ceased members, being an increase of one annuitant since the ist of January, 1978, THE STEWART ATROCITY. STILL NO LIGHT—WHAT DR, CROW SAXS OF CHRISTIAN, AND OF HIs OWN ACHTEVEMENTS Nothing transpired yesterday that would throw any light on the identity of the perpetrators of the Stewart outrage, or lead to the recovery of the stolem remains. Judge Hilton visited Police Headquarters about noon and remained over half an hour closeted with Inspector Murray. Newspaper repres sentatives who called at the office of Judge Hilton, corner of Broadway and Chambers street, in the afternoon, were informed by his private secretary that there was nothing new to communicate, DR. CHRISTIAN’S ASSOCIATE. In regard to the statement published in 9 Wash- ington despatch to the Herarp of last Sunday, mak- ing mention of Dr. Crow being associated with Dr. Christian, the man charged with exhuming the remains of Mr, Stewart and with being a frequenter of gambling houses and a generally dissolute and abandoned character, Dr. Crow himsel?, in conver- sation with a Hunatp reporter yesterday, said:—"I1 is true I was a partner of Christian in the resurrec- tion business, and I am stitl prepared to furnish bodies to colleges ut $25 per capita, or to any reliable parties in quest of such subjects.” “From your acquaintance with Christian do you suppose he had auy hand in the robbery of Stewart's yrave “I would not like to say whether I think so or not,”” “Have you any private knowledge of your own con- corning the robbery?” “[ will neither say that I have or that I have not, but I will agree to find Stewart's remains for Judge Hilton without any police interference for $100,010,"" “Woaldn’t you be content with about half that sum?” “Not with a dollar less. Such a chance as this is not to be lightly thrown away, hocause, like the Cen- tennial, it dou’t come again in a lifetime.” “Have you any theory as to the robbery of the Stewart vault and the method sdopted by the robbers in carrying away the body?” “The theory would amount to nothing. Any sen- sible resurrectionist would put the remains in » bag, sling it across bis shouider and walk along the streets with it unconcernedly, A confederate might go ahead of him to look out for the police aud steer around them the best way possibie.” “Would not tho smell attract attention ?”” “No; there is a great mistake about that. The smell would be noticed by a person coming close te the man with the bag on his shoulder; but he could keep away from contact with people and take a clear course,” A HANDSOME RECORD. “Ave you or Christian the greater expert in resux recting bodies “Lconsider Iam. I have been at it twenty years, and in that time I have raised about fifty or sixty stiffs every winter and never got caught; byt Chris- tian got nabbed four times. The trouble With him is he lacks caution." . “Why is it the Washington police give you such a d name ?"” “Because I had them all suspended and investigated three years ayo, I invented a yume called the Cen- tennial, of which they received a considerable per- centage, for the reason that it was illegal and it waa necessary to bribe them to keep their mouths shut and ailow the game to go on. They were whitewashed and put back again aud have never liked me since for showing them up, and now their object is to spread damaging reports of my character. I am @ graduate of the Jefferson Medicul College of Philadel- phia, also of the National Medical College of Washing ton. I was chief editor of the Washington Daily News, and am now travelling, lecturing on the laws of ‘health? in connection with the Washington Medical Institute, ‘The statement that 1 was arrested for malpractice ia falso, and the game of ‘Centennial’ which I invented is the only excuse for calling me a gambler.” ‘The Doctor, having thus relieved himself, went away happy. KELLY AND MAY—NEITHEB OF THEM IN OR NEAR PHILADELPHIA—ANOTHEB WOULD-BE SENSA= TIONALIST FOILED, [BY TELEGRAPH TO THE HERALD.] PHILADELPHIA, Nov. 27, 1878, ‘The anonymous communication received by Mayor Ely yesterday, dated Camden, N. J., which professed to give valuable information of the whereabouts of the only two persons now known to be wanted by the New York police on suspicion of complicity in the Stewart grave robbery, was either a deliberate hoax oracurious blunder. The note, as published in to- day’s Henatp, declares that both Billy May, the Chatham street soda water manufacturer, and Kelly, the hackman, are in or near this city, the former being at the Punch Bowl, and the mys terious hackman in secluajon at the Falls of Schuylkill, one of the suburbs of Philadelphia. ‘The HeRatp correspondent made a careful investigation of this alleged clew to-day, and the result is only interesting as showing upon what slender foundation a very grave and weighty accusa- tion may sometimes be based. The Punch Bowl is an old tavern and stopping place on the Broad Street Drive, at the northern boundary of the city. There is a William May at the Punch Bowl, but he officiatea behind the bar, and has been employed there for six months. He is an Irishman, but was raived in Phila- delphis, has never lived in New York and does not at all answer the description the big Englishman for whom the New York police are looking. The vil- on of the Falls of huylkill is not’ far from - this city, and there are several of the Kelly famil, there, but none of them are New Yorkers or hack ‘ark. vers. One of the Kellys is also, by a coincidence, a friend of May, but he is no more the New York hack driver than he is the Chatham street soda water man, MYSTERIOUS CONVERSATION OVERHEARD BY & PASSENGER ON A BRIDGEPORT TRAIN Bripeeront, Conn., Noy. 27, 1878, A mysterious conversation occurred on the quarter pust eleven P, M. train east from here last Friday night, which was overheard by Mr. J. O’Conway, of No, 413 Jefferson avenue, Elizabeth, N. J.,a passen- ger on the train. After leaving this cjty his attert. tion was attracted to two men who sat in the forward part of the car near him, and who, he thinks, got on the train at this city. As he lay in his berth behind them he heard them mention the name of Stewart, and heard one say to the other, “If we don’t get what we want out of Stewart's body we will kiduap Mrs. Stewart and have @ vessel ready and run her off so she can get no help.” They then dropped the subject. He kept watch of them until ter, left the train at Saybrook Junction, ‘The next day (Saturday) he came back and stopped at the depot in this city, when he informed Officer Arnold. and Chief Marsh of what he had heard the night be- fore aud gave a description of the men. He de- scribed them as about twenty-five or thirty years of age, dressed in ordinary clothes, a little sbove the ordi height, of dark complexion and evidently of foreign birth, Officer Arnold went to New York that night to see Superintendent Walling, but, that gentleman bein, absent, he hadan interview with Captain Byrnes, o! the Fitteenth precinct, and told him of the matter, Captain Byrnes said it was new to him, as they had no clews leading in this direction. He considered it im- portant enough to be thoroughly worked up, and seemed to think that this clew was as plausible and important as any they had. TROTTING AT FLEETWOOD. Despite the rain storm yesterday quite a large num ber of spectators assembled at Fleetwood Park to witness the trotting races announced, which were postponed from Friday last. The programme called for three events, but only the match for $200, mile heats, best two in three, in harnesa, took place, the others being declared off on account of the weather and the heavy condition of the track. The conteat- ing horses in the match were Jake Aberle’s bay geld- ing Lookout and J. McQueen's sorrel gelding Billy Buckingham, the latter boing the faverite at $25 to $40. The first heat was taken by Lookout by one length; the second heat by Billy Buckingham after a lively brash, In the third heat both horses crossed the score head and head, and the judges decided it a dead heat. The fourth heat and race was by Billy Buckingham by two lengths, The following isa SUMMARY. Firrrwoop Park, N. Wee a tea tnens Noy. 27, 187%.—Match $200, mile heats, the best three in five, in harness, 3M pitiy Buckingham. 2101 . MeQueen’s #8. g. jue T Aberle's bg Lookotteecscae 1204 Time, 3:07—8 1 256. HANDBALL AND RACKETS, At McQuade's Court, Madison street, yesterday, John Moore and James Cummiskey were defeated by James Dolan and David Quinn in » gamo of band bull, best two in thtee rubs, by a score of 54 to 56, At rackets, best two in three rubs, James McGrath wnd Thomas MeMantts defeated John McGuire and George Kaine, by a seore of 56 to 49, At the Hoboken Racket Court Michael Landy layed Thomas Goodwin and Timothy Connelly for Pie best three in five yarmoes of rackets, and was de- feated by @ score of to 9%. James Keating and ‘Thomas Curry then defeated Mesera, Landy and Goodwin at 4 gaine of handball, best three in five rubs, by @ score of 14 to 04, WHERE IS MR. VOSBURGH? Mra. Vosburgh has written to Deacon Bumatead, of the Bergen Baptist Charch, Jersey City Heights, avke ing for information in regard to the whereabouts of ber husband, She says she has not seen or heard from him since left Jersey City for Stuyvesant, and is greatly troubled in consequence,