The New-York Tribune Newspaper, December 4, 1866, Page 4

INTERNAL REVENUE AND POST-OFFICE DEPARTMENTS. . REPORT OF THE COMMISSIONER OF INTERNAL REVENU ity ast ey DEFARTHENT. OFFICK OF INTERNAL REVEN WASHINGION, November 30, 1€ annual 1 bhave delayed the preparation of my ceport for the fisesl year 1565 somawhat past the time when roquired by law, tn order to avail myself of the latest roturns (rom the oflicers of the several collection districts, and to pre- nt 80 far as possible, some of the results of the law. 03 nded by the nct of July 13, which maialy took eficet ou tho st of August last. S With the singlé exeeption of the retief of paraffive ofl an ernde potroleum from tas by the joint resofution of May 9. 1666 e receipts of the last fiscal year were from the law na A nded by the 8ot of March, 1865 . . For thefirst time, therefors, in tory of the office, the mu-u...hl;::n;-.nylw m:p;‘.;‘;‘]‘:. stantinlly ex) e procecds, " Al report el ting through ab entire year. Their i excess of the estimate at to believe, of i-‘(‘l and o law, R u‘.‘a ‘date of wy last report, and. as Ihave reason the estitmats of others who had given thought to the sut wore most sanguine of the successful operation of t This excess came largely from mar ufactor timul by the opening of Soutbern marketa, and from cotton. of which ihero s A wupply than wes anticipated. ‘The amount itself ahort of the revenue for the two years next preceding, s not wnd very considerably (n excess of the Brifish reveuue for the Year 1866 [rom customs, excise, stamps, property tax, and post: T ndoed. the entire reveuucs of the empire exceeded sum of §22,000,000, thoss of this office only in th payment of this enormous tax + It cannot be denied that 1ian proased heavily upon all classes of our citizens ; bat they have been encouraged by the remembrance that only were vernment defrnyed thereby, but current expenae bt the nationsl debt uational life, was thus gradually 1 have thought it advisable gregate receipts of internal revenve for the § r, and of Thele principal sources, in conacction with a like 1he years and 1865, that compariscns way be made of the procseds of different law s AGGREGATE RECEIPTS. The aggregate receipts of iuternal_revenue were for the year 1964 ... 4117 48 52 | I86S.......#201,129,52 17 1866 *§310,906,954 17 T'lhewe amounts incinde drawback upon goods exported and amounts refunded as erroneonsly assessed and coliccted, but are exclusive of the direot tax upon lands, and the duty upon the ciroulation and deposits of National banks. These amounts are a8 follows Returdod. the preservation of the g Y 1t n statement of the ag- Drawback " Amonnt 64 . 1965 L RECEIPTS FEOM 6PFCIAL SOURCES. The amounta received from soveral of the most important sources of rovenue arc herewith presented, with such explasa- tory remarks as are deemed nocessary N Banks, Truat Gompanies and Sasings Institutions. . 1564 1865, Dividends and additions pases 577,010 73 $3.957.200 65 §4,186,023 T2 06 30 1,493 66 661 84 990,38 11 ™, /043 841 08 2,009,635 83 908 374,074 11 the year 1864 the pon dividends was three per centum, while in 1865 and 186 it was five per centum. The tax npo ciroulation and deposits was ixc: for the iast two yoars. The diminution of the receipts is due to_the conversion of the State bauks into national associations, which Jay the tax upon their capital, circulation and dejosits 10 the Treasurer of the United States. RAILROADS. 1864, 1865, Dividonds ... i3 38 2,470,816 89 Interest on bonds 6,859 09 #47,683 61 The law of Juuo 30, 1864, first imposed s duty upon profits carried 40 the account of any fund, or used in the construction; B‘.’tf mfi«n]\tu from that source are included in the dividends 1835 aud 1 INSURANCE COMPANIES. 1564, 1865, Dividends and additions to surplus $445,396 17 764,658 38 767,231 12 "R‘H‘m and ngsessments. 523,562 42 961,502 99 1,169,722 23 The taxation'of dividends of insurance companies during theso three years waa the same as that of tle bauks. The tax upon the receipt of prewinns and assessments was ope per ocntum for the year 1864; afterwards, it was one wnd one.baif per centum. SALARIES OF PERSONS EVPLOYED IN THE SERVICE OF THE UNITED STATES. 700,124 63 | 1865. 1866. ‘The inorease for the year 1866 above the 3 part due to the three months' extra pay allowed to th ably disoharged from the military and paval sers of many disbursing officers, and the lar paid as prize money for vessels captured prior 1o, cated upon during, that year. REVENUR STAMPS. 85,804,943 14 | 1867 amounts ut abjndi- 1864, ... $11,162,302 14 ! 5,044,573 18 The receipts of " ¥ additions to the stamp schedules under the act of 1864, and those of 1566 above those of 1665 by the use of stamps in the States prior to that time in re- bellion. llnflnfi the last year the snm of §1,702,442 63 has been received from the sale of one cent stamps, and that of §3,53,- 465 82 for stamps from special dies for matches, perfumery, cos- ‘metios, medicisos, and other proprietary artices. The double penalty imposed by law is o great security to its faithful obsery- anoe. - Booause of the invalidity of an uustamped instrument, the party receiving it, and to whom it may be of value, is likely to insist upon the attachment of the appropriate stamp. It is this penalty upon the receiver which especinlly enforces 1 believe they have been more he. T’m"r: u‘:‘ dlh. statute, mfi,n‘. juring the past year than in suy one pre- ceding. ARTICLES IN SCHEDULE A. O & | 1865, 1864... 820,28 35 | 1866, ,692.7 ‘The annual list of May, 1385, was maluly collected 30th, aud increased the receipts of the fiscal year 1806, LICENEES. < $12,508, 681 25 43 3, 145,288 71 | 1865 1 ERPER $15.015,743 2. The increase of receipts in 1865 was due to the increased classes of persons subject to charge under the act of 1864 ; to the inorease of the liccuse duty upou several kinds of business, and to the_reassessment of wholcsale dealers under the same statate, The incroase in 1836 nrose especially from the opera- tiops of the law over that portion of the South frow which, prior to that time, it had becn shnt out by the rebellion. INCOME. 3 upon ¢ Receipts of 1865 were from the income of 1863, aud those of 1866 largely frog thes of 1861, at three per centum, and atum. Of those of 1665 centum, §° 75 taxed at five per cent $75,373 93 at one and one L $801,941 99 were returncd at ten p tive per centum, §9,6: 96 at three per ceutum, 402 76 at one and one-balf per centum. Of the receipts iu th fiscal year 1866 §26,570,400 3 were at five per centum, and 834, 501,22 67 at ten per oentum, have endeavored to ascertain the procise pumber of persons were assessed for an ingcome-tax in the annual list of 1866, the asscasors’ reports, especially those of the Pacitic slope and other remote districts, Lave not all been received. The country is now divided into 240 collection distriets. From 165 of them the desired returns have been reccived. Of the §30,953,440 51 collected in the United States up to ‘Navember first—as reported 1o this office by the several collec- tors—§M, 798,726 16, or nearly #7 per ceutum of the eutire amount, was assessed in theso 155 distric and of the persons who were assessed in these districts 190,189 returned an income 3 of of less than §1,000 : 1 ore than §1,000 and not more whan : and These sumi excess of $600 exempt by law from taxation. This ratio will be™ changed somewhat wheii the full returns are in, as s greator gm\ton of the largest incomes wre scquired in the older The whole amount received from the tax upon incomes since the of the law of 1862 and including the collections during the present fiscal year, already Teported to this oflice, is $164,860,018 05, IRON AND STELL I¥ THE VARIOUS FORMS WEHICH ARESPECIF- JCALLY NAMED IN THE LAW. 1864........ 3,604,105 49 | 188 . L . .os 913,798,133 O The tax upon these srticles wos increased at every session of Camgress until the lnst, when it was very largely reduced. The incroased roceipts were due not more to the increase of produc: tion than to the additional number of articles made taxuble and the inerease of duties upon those previously taxed. KEFINED PETROLEUM AND COAL OIL. 250,328 #0 | 1865 . 43,047, $9,218,808 63 kd $3,072,476 56 255,424 79 | 1865 3,474,408 0 CHEWING AND SMOKING TOBACCO. 086,664 74 | 1865....... 88,017,020 63 1866 ereee . $12.339.921 93 The production of taxable tobacco in 1663 was 2,680,056 ; that of 1864 was 63,772,426 pounds, of which more than were returued in June, to avoid the sdditional duty under the new law then shortly to take effcct : that of 1865 ‘was 36,639,020 pounds, and that of 1866 35,748,351 pounds. FERMENTED LIQUORS. 1864......... 220,710 75 | 1863, 3 .. 5,115,140 49 1866 the year 18G5—'66 the tax was one dollar per barrel. for ten months of the year i#64 were ut the rate cents, This increase for the year 1866 came both from mmrm and from improved thoroughness in the ol w. . 49,657,181 06 The of sixty operstion 1864. . Tn 1864 the 1866. . .ven. 29,106,578 15 tax was twenty cents per gallon, untl] March 7 of that year, when it was ruised to sixty cents. From July 1 1664, to Jantary 1. 1865, it was one dollar and fifty cents, and two Much of the consumption of 1865 was of spirits distilled In years, in_anticipation of increased tax. The recel the soveral months of the last fiscal year were es fol- d—r the recelpts were in 30 | October (so far us A reported)...... $2,502,043 32 ts dls- tilied from and this that the ww-:_ ts for the yurwn- Nov. 1, 1845, to Nov. 1, 1866, were $37,627.505 45. m‘“‘-‘h"fi""’u—?‘-fi&%’m“"‘m" dona gt Spon a8 the tax uj wplrits. l:h'h‘-yh- the evasion of IM’: REVENUE. ‘which -Smhd m’nfiu lmoxrnl . ‘make it ihlo to give s statement of the exi it 523 culhoing s vevenus o s e st b From sliowauces made to the disburs “The between thess. those R Rsiary o B § iy e Ivosipte sro wot sleys ieted uhou Tho books ‘e day. Siwiiar disetopsucies il he wotiged eisowLeio. sl fact that of the two sawo caose ing officers, &e., the expenses of the past fiscal yoar appear to bo s follows : “Assossors’ compen ‘Assiatant-Assessors’ Collectors’ compensal dents of exports and ud clerks in s bureau. | cotton tags 6 04 7,684,700 46 % than that for the previous year, receipts Jargely increased without & cor respouding inercase in the cost of collection. FROBABLE BECKII'TS FOR THE PRESLNT FISCAL YEAR. 1t is not easy to estimate with coutidence the fature reveuue untre so extended ns ours, especially when it is drawn y and such various soures The difficulty int ifferent classcs of businesa are seriously dis- firbed. us they must be, by the various influences which always affect them at the closo of 4 great war, There is an uneven produc of taxable articles ; of some the production is stimu. [ated, while of others it is retarded. or perhaps altogether destroved. There are certain ascertainable data, however, bear upon the subject, and I herewith submit & tabular mths of July, August, tember of 1864, 1565, und 1+66, as shown by the certifi- wit which reached this oflice during those months e 1866, 17,079,103 38 5, 34,087, 043,340 81 September.. 15,8 31,900,410 82 14,718 66 Total. . $4%, 102 385 95 720,425 66 §98,837,162 85 In this connection, the receipts from several large sources of revenue for the first quarte the present fiscal year 1566 may be regnnied as inportant. The returns are uot fully recoived from all the collectors at the time of my writing. They are re- quired monthly from each of the 240 collectors—in all, 720 for the quarter—aud all but 22 are included in the following state- meut + July, Aug, nd Jaly, Aug, and bk il $4,293,163 22 $2,854,461 19 August & m‘ru Sfrom— Clothing, including boots aud shoes and other urticles of dress rigs made of cotton.. 2,420,243 52 2,578,009 95 Clofh and all textile or knil rics wade of wool. 2,555,703 02 Raw cotton..... 3,003,507 24 Fermented liquors.. 1,225,377 19 Spirita distalled from apples, peachios spmu’.‘fs:i'fi?m from other materials Refined petroleum and coal-oil Cigars, cigareties aud cheroots. Tobacoo—smoking and chewing... 2,014,7% 15 Suuff. 129,305 69 Other manufactures and produe- tions not_enumerated above.... 13,190,467 17 Gross receipts of railroad, insur- ance, express and telograph com- paics, &e.. 2,614,790 42 Logacies. 122,546 49 Successions 16,063 88 Inoomes over Stamps in all districts ‘The articies named in the were exempted from tax from and after the passage of the act, of the thirteenth day of that month. The reduction of tax upon other articles aid objects of taxation which that law pro- vided, took effect on the first day of August following. The taxes which accrued during August and Scptember were re- spectively payable in the months of September and October. Seventy-nine of the 480 abstracts due from collectors, have not been received ; but 1 sm able to indicate very nearly what sum the total receipts will reach, by giviag, fogetber with the receipts reported as compared with the receipts from the same districts last year, the total receipts from all the distriots duwing September and October, 1863 Colloctions re- Collections from Total eollec- Tad fot " the sume X lept. 8 n icts in 3 ) Ock 196, bor, 108, Ok Clothing, _inclnding boots, shoes, gloves, bats, and other ar- ticles of dress..... $1,714,351 64 €3,634.316 24 §3,785,185 74 Cloth and all textile fabrics of cotton.. 1,642,561 59 2,045,931 89 Cloth snd all text] fabrice of wool.... 1,050,260 36 1,065,008 08 Raw cotton. 1,044.800 38 el 91 Fermented liquors.... 1,078,271 56 B 68 9 prrilll distilled from apples, peaches or pr"lpu 59,800 26 12,681 &7 14,315 40 Spirits distilled from other materials.... 5,557,170 82 1,330,252 62 2,121,687 20 Refined petrolenm and coaloil...... . 643,994 9% 94,872 13 1,139,961 05 Cigars, cigarettes, and cheroot . SG2TIO M 48104579 Smoking and chew: ing tobacco. 2,020,608 43 1,720,421 50 Snuff....... L A0,5879 114,115 43 Iron in its various forms and condi- tions. 823,518 20 Leather 76,492 53 Other manufactures and productions not above enumer- ated... e 5,494,070 16 Total of mansfac- tures and produc tHous. ...t 422,572,058 21 $23.936,815 41 §27,64 Gross receipts of rail- roads, insurance companies, &o. The tax upon boots $1,003,908 17_$1,771,577 25 41, oes and most wearing W parel not exempted, was reduced from #ix to two per cent. ‘Tlat npon cotton was increased from two to three cents por pound, but ::; receipts wero less than last year because of the accumula produot of previous years, which wus at that time brought to market. The tax upon refined petroleum and conl oil has been somewhat modified in its application, the Leavier oils being ex. empted, aud the tax upon some of the lighter being reduced from 20to 10 cents per gulllon, The duty upon Fu. priced cigars has been reduced, and that upon those of greater value increased. The gross receipte from transportation of property are no longer subject to tax. 1t will be olserved that tho in- creased revenue for these two woaths from distilled spirits, fe mented liquors, and tohacco, above that received for August and Septomber, is nearly equivalent (o the loss which resulted during the sume period from the reduction of taxes upon other article The compensation will not be continged, however, and the receipts for the last three quarters of the present fiscal year will not equal by geveral millions of dollars the collections for the sawme time last year, Frow a careful consideration of all i ta in my possession, however, 1 believe that the receipts of the fisc year 1867 will reach the sam of two hundred aud eighty-five ‘millions of dollars, (§285,000,000). CONCERNISG CHANGES OF THE LAW, The Commission after remarking on the care required in making changes in the law and the difficulties which changes give riso to, recommends that the returns of the annual list be imade at an earlier date. The amount of one's income, exeept in cases where regular books of account are kept. caa ordina- rily be more accurately dete rer the close of the year during which it scerued. x-payers, iucluding o large majority of thoss engaged L wgricultural pursuits, have more Jeisure ut thet time for the preparation of their returns; while many residents of cities, and iudeed of the warmer portion of the country generally, re to leave their districts for pur- poses of business or plessure before the aunusl lists under the prescut law can puss to the collector from the huuds of the assessor. In such cases no little annoyance and complaint have avisen, which the utmost vigilance of the revenue oflicers could Dot fully avoid ‘Ihe special tax is payable on the 1st of May, on or before ‘which time the party sub it is required to register his name, calling, &e., with the assistant assessor of his asse ment district. The assistant assessor has afterward to make his certificate to the nssessor nnd coliec and the collector usually awaits the anuual list from the assessor before com- mencing bis collections, Yet the law provides that any one Who shall carry ou any business, or do any act mentioned in the statute for the dotng of which & special tax ia imposed, without payment thereof, or without producing his receipt for such pay- ment when called upon by any internal revenue ofticer, shall for every such offense, beside being linble o the payment of the tax, be subject to imprisonment or fine. Peddlers. too, engaged in business without paywent of this tax and producing such re- ceipt, are liabie to the forfeiture of all the property which they use or employ. 1t is not kuown that hards b haw arisen by th oo rigorous enforcement of the law, but wroug is liable sult, or the revenue be defrunded, by the exercise of clemency to those inclined to atterpt to violate it altogether, because its precise requirements canuot be regarded. The law should not make its constant violation & necessity. T recommend, there- fore, that returns for the annual hst, including the registry for the special tax, be required on the first Monday of March in f.‘.'fih Jear, and the tax be made payable on the 3th day of April owing. Ho also recommends the reduction of the 10 per cent penal- ties to 5 per cent, believing that o penalty of 5 per centum for neglect or refusel, and interest at the mte of 12 per centum per annum from the time the tax s u{mynblr. will ‘be amply suf- fivlru:, ‘while from its greater equity it will occasion less com- SPECIAL TAX. special tax of the nct of July 13, 1266, 1a & snbstitnte for the license tax of the earlier lnws. © For evading its payment when due the law provides fwmprisonment not exceeding two years and o fine of ot more than , or prisonment is uever visited, and the fine is made the nominal sum of §1 only, ax it is represented to this office it s i some Judicial districts, regardicss of circumstances, that which scems % have been considered by Congress s an offeuse worthy of special punishment does not bring l?nn the delinguent even the amount of the penalty imposed for fallure to m-ln & monthly T Fecorniment that e imprisonment, except £ recommend that the imprisonment, except for violation by distillers, rectitiers, and munufacturers of tobacco, wiuff and cigars, and dealers in liquors, be abolished, and that the minimum fine for failure or evasion of payment be fixed at §10. With this change. relief by positive enactment should be given certain classes of persons against whom it has never been deemed neces- ng or Just to enforce u:gen-l provisions of the statute, pDLLERS.—T0 those nrficles Which persons are authorized to rddu without payment of special tax, I recommend the addi- ion of fruits, vegetable, ples cakes, and confectionery when wold by on foot, thus protecting many women and children '“’""fi."’ earn a livelihood, "and who, in numerous iustances, have been subject to anxiety and cost. WHOLESALE AND RETAIL DEALERS 1N LIQUORS —The law of een wholesale and retail dealors in liquors by the quantity of sin, sl of three gullons or more at one time consti " u wholesale dualer, The present statute provides an sdditional test, and any person ‘whose annual sales, nehdln“ salos of other merchaui ox- it ot deale i THBOT 1 15 tha tax upon & rot er uor ; that of a whole- sale dealer $100 or more. Many dealers whose te salos are small may oceasionally sell in quantities of more three gallons. One such sale fmposes an addition of §75, It is diffi- cult for revenue officers to o in such cases when such y has oocurred. 1t is burdensome for the dealer to puy the amount. The law often fails of its legitumate purpose, and 1 recommend its modification by striking out the limit i quan- m‘. leaving only that of value or receipt. UTCHERS, —Hutchers nre required to pay a special tax of §10, snd are not regarded as dealors. The repeal of the tax upou animals d.-“)uu”d bina removed the reason for the measure- sbie relief itchors from special tax, and I respectfully recom- mend that when their aunual sales exceed the sum of §25,000 their tax shiould be increased s that of dealers is la- PLUMBERS AXD GAs-Frrrens —These persons now 410 only, the same amount which s paid by retail dealers. 1 see no reason why they should not be taxed upon their salos as deulers are taxed, und as wholesale dealers when their annunl sales ex- ceed §25,000. Equality of taxation 18 greatly desired i rovenue laws. ARSISTANT ABSKSSOUS. The proper and equal cowpensation of Aseistant Asscssors ‘ the Das always boen attended with difficulties which are still, per- e None of their expenses, except for station. k books, and postage, prior to the act of July lnst, poid out of the public treasury. The pecessity Tor o 1t absence from bome on the part of the Assistants in coun- 0 of rentals iu cities, indoced Con- orize the addition of one dollar cowpensation when ont of the towns of b »ler the Com p hnd e of the law ¢ owunce for rent, uuder w ces complaint, and is liable to m e, whatever can be lixed by st tion of a1 iy nbuses. As o gen- Id not Le left to iscretio the one dollar per diem, in certain cases, was intended really for an increase of compensation. The uniform experi Assessors and of this oflice warants me in recommending that the desired pur- pose be necomplished by a suflicient and uniform increase for ry day's. service, without aby relmbirement for, Tent ty-five ceats, or even one dollar per die d nid but ittlo to the expenses of asscasments, while 1t would avoid eom plaints, aud perhaps iusure as equable compensation as under the present law. DISTILLED SPIRITS. The provisions of Iaw bearing upon_ the distillation of spirits were essentially defective prior to the act of July, They were insufficient, even in the bands of the most experienced and vig- flat oficrs to preveat frauds, either in largo.or small i eries. Great numbers of small stilla for the illicit manufactnre of rum from molasses were secreted in the garrets and cellars of the most populous eities, while many of the recognized and licensed distilleries were run by night, their proprietors keeping frandulent nccounts of their consumption of grain and other vegetable substances, and their production of spirits and the sale or removal thereof to bonded warehouses. Tn every distillery the daily production of which was one hundred gallons or more asscssors were instructed to place an assistant, whose duty should be to record the removals of sl articles to and from the premises, and generally to see that all the requirements of the law were fully complicd with. Collec: tors were urged to unusnal watchfuliess for the minor and unlicensed distilleries, and everything was done which was be- lieved to be valuablo, snd which the law would nuthorize, to check the frands, but without the desired success. The new law has more productive power than the old one. Its punitive provisions aro more numero and siringent, and the with- rawal of the spirits from the nctusl and exclusive possession their owner, immediately upou their distillation, I have no doubt will be of advantage to the Gonernment. 1f in times of political excitement it were practicable to ap- point men to the office of inspector for their incorruptibility and genern) fitness, men who love honor more than money, rather than those who are pressed for place s a reward or an induce- ment for political efort, the appointment of an inspector 10 every distillery m!rhl be profitable to the Governmen It re- quires o man of tried integrity to resist the fattering tempta tioms of o corrupt distiller. Ten thousand dollars adroitly and wickedly expended may hide the mauufacture of 1,000 barrels of wines, which should yield 8100,000 for the public revenues. Tf an inspector has forgotten his duty in a singie instauce, ho is in the power of his purchaser for all subsequent transactions, becoming his constant protector, aud Lis ready witness against the Government. ‘Until some sort of meter is fonnd which, while the still itaelt {8 under the locks and seals of the Government, shall infallibly rogister the distillation for the inspection of two or more offi- cers, each to be n check upon the other, trust must, more or less. be imposed in jo man. 1 recommend, however, such modification of the will the colloctors 10 in- terchange the inspectors of the tilleries within their districts at pleasure, #0 that several persons may from time (0 time, and at irregular intervals, Laye ch: distil thus to some extent testing the faithfulness of each other, together they may prevent the consumuation of frauds by the manufacturer. The Secretary of the Treasury will not understand from what 1 have written that 1 mean 1o depreciate the nsefuiness or the reputation of those who are now employed in this important branch of the service. 1 only speak of the liability of their 10 abuse; and becanse of the occcasional discovery of ainful rumors constantly received atthe department, advise Bow their sersices may be made more pro- fitable, and the credit of the honest be saved from scerifice or suspielon, The Government owes protection to ita just distil- lers, and unless they are saved from constant loss by the low rice of llicit whisky their business will pass entirely into the Bands of those striving t6 sccumulate fortunes by robbiog the national treasury. ‘The amended law imposed position corruption, and the s0 many new »lelunm upon distillers that it was not deemed ous o nyal y enforce all its provisions upon the st day of September, When the sauo took effect, nor immedistely thereafter. Warehouses and cinterns of peculiar character were to be constructed; Jocks aud inspectors 1o be furnished and_appointed by the Department Kome further time was found, indeed, to be necessary, both for the manufacturers and the Government. ‘The law is Bow, how ever, in practical and very general operation, and disregani of itw provisions, whether fraud can be proven or not, will be ri orously dealt with. Aswas auticipated, ita exactions seetn for a time to multiply the number of illieit stills, seldom brought 10 light except upon discovery by detectives; but the renewed watchfulness of the local officers, and an amendment of the pre- seut law which will suthorize the destruetion of small il casurably prevent their use, rits, now much larger than ly increasing. wports that, under rt while the receipts from distill in yeurs past, will be consta With r?“:urd to the tax on recently revised regulations, proper and couveniont asse BoW 10 require few it any chanes, either of law or regulations. CIGARS, er 1,000 upon all domestic cigars, fmposed by the act of March 3, 1865, was more uniformly patd than the tax under uny previous law. Fewer cigars escapad taxation there was 1o opportunity for fraud when their full number was returned to the assessor. He, however, recommen to the difficulties of masessme He recommends the exte engaged in dealing in turpentine as those iu coal oil und tobaceo. He further recommends that the District-Attorney be re- questod by 1aw to report to the Commissioner in eases arising \nder the Internsl Revenus law, as they are now required 10 do to the Solicitor of the Treass He recommends the abolition” of the stamp duties on legal proceedings aud all affidavits, and o modification of the law &s 10 stamps of conveyances, by estimating the stamp on the con slderation abore the incumbrances, and & reduction on the he The tax of $10 revixion of the whole law, owing and har Il ca Py o8 10 thowe ged 1o dealing y beliof that in ranted, both to ductic jeradual reduction of taxes, | w 10 0ther way can the same mewsu pablic aud b ber of tagable articles. nu centum upon manufsctures midded 10 the tax upon those spe the law, is becoming s souroe rule; s P ppr foud be frritation Lut, a8 early as practicabls f icanl and B the manufacts be exempt from ch siould be ansessed, er. 1o, to levy o large tax upon g It is et aching Jearued fiom the older na erive aluost th tire ! articlea. It may not be § ¥ W0 secure from so few sources the large amount which we o through indirect taxa tion, but additions of such articles us Congress shall detvrinine shotld be wade to the list of those exempted wi rupidly as the amount 1o be derived from such taxation can be sadely reduced. and then only f 1ax upon few artic lens expensive this lesson, which we n tione, England and Fra excise tax from four or five sy icable for us lmmediat THE DIKECT TAX. a wlich were lately st fiscal year w 14th section of the uspouded by L of the iug date from the 3 day of The collection of & in insurrection, Was o thereafter, until, unde Act of July 26, 1866, Secrotary of the Treasury, bear August following. 'No lnnds bave been sold for unpaid taxes, sine the suspen- sion of such sales by the order of the Secrotary of the Treasury, issued May 17, 1863, The following is an abstract from the reports of thé several Commissioners, 50 far as recelved at (s oflice, of Gk recelpts and expenditures since June 30, 1663: Tax, interest, Kecelved from and penal other sour Expecdityres. §36,706 #2 16,004 1 10,0 42 ts by the Commissioners for Bouth Carolina, as stated abor ve expended $10.606 04 n ting the surveys of | forfeited to the United States, and $5.813 92 for the support of schiools established in nccordance with instructions issued by the Prasident, Sept. 10, 1863, for the education of colored and iadigent white n In'f: l:lolm:llul"nm%lfim‘.lgflwtu (Lo deat! one exns Commissioners, which recent) oocurred, has made It impracticablo to obtain, at this tise, { complete report of the trausactious of the Commission in Btate. No collections whatever have been made In Alabama. The authority conferred upon the tary of the Treasury by the act of July lust, to suspend the furthier collection of the g:mtmhuwh:? -‘x:;clnll. ut still further logislation may fect the full purposs of Congress in this be- lt: The States laely in insirrection are 1ot now authorized o assume the amount apportioned to them respectivel n‘:luel- of I:.ln same u‘:n now rhvlln;-ltlm un| 1f 3t were lutended that such sssumption might follow the postponement of the col- Yootion of the. tix, suthority for 1t shoukd bo granted by the amendment of the law, There seems to have been no urgent reason for such postponement, if, at ita close, the eollection thus Interrupted and delayed is to be resumed. 1t would have boen much easier 1o have completed the collection before suspe when the officers were in commission and on active .xu-,".'m when the entire machinery of the districts, too, was ia full grmu.n, than to do the same work aiter a vacation of near), 1¥ mouths, Nor can it be supposed that Congress designs that the direct tax commissions, with their full clerical force, were to be kept in session during all this period. Immediately after the order of suspension was tssned, there- Zr-‘ am PRy "'".‘"‘.L“‘.L’. 7 o g:mg the r-unmhlh:n rections were sen sov ds to 1 il accounta of all their proceediogs iyl ‘The Commissioners for North Carolina were the first to com- my with these directions, Their accounts have been rendered this office, accompanied by their resignations, which have boen acoej 1o take effect on the 1st of {I‘ewmlnr. The acoounts of other commissions have since been recelved, and the services of all the bourds fu States where no sales of lands for unpaid taxes have been mude will be sbortly con- cluded. With the aid of appropriate legislation, the “same course can be taken with refereuce to the comuaissions in States where sales have been made. Such duties in_the adjusiment of rights of redemption and other private rights, 88 Lo remain to be performed by the ommissoners of direct tax, may bo devolved upon some officer or officers of the Treasury Department in the city of Wash- inigton, the parties in ntercst belug allowed, under the direetion ch ‘ofier, o take evidence in the several States. This being done, no necessity will remain for a continuasce in office of these several commissions, with tho single exception of that of South Carolins. In that State, lands pur! )y the Uni- ted States at anction sales for taxes have been aguin sold to ml‘-:n on und‘I; :{;:r';rhfl e ::;l ;pocl n,d"“" have 0] ¥ tho act uly 16, 1866, relat- Ins_lpomw E:Fmdm' Bureav. v Lo above suggestions are pre the belief that Cm:fiuu intends to allow the assumption of the woj 08 by the several States. If such privi 'e is to be denied them, oF they prefer not 1o assume them, or if for any reason the col- lections are to_be resumed, such legislation is unnccessary ex- cept to avold the cost of the commisslons witil Junuary 1, 1804, Wlien active servieo s to bo again commenced, 1t husf been brought 1o the notice of this office, more espectaily *Pastial. In addition to the disburse: of the | NEW-YORK DAILY TRIBUNE, TUESDAY, DECEMBER 4, 1866.—TRIPLE SHERT. Quring the past yoar, that, from misapprehonsion of the lnw, consuleral |fifim. of ‘money have bean erroneously colleeted of tax-payers in the States lately in insurroction, which sums have been paid into the treasury of the United States. Claims for vefunding these sums have In several instances been presented, but as they Liave been covered into the treasury no officer iy authorized by law to make such restitntion. khe Secretary of the {Treasury, through this office, has given directions under which their precie amonnt will be ascertained, together with all the eireums! under which the same were paid. It is r lly recommended that the law be so amended that the Secrotary of the I reasury may refund such suss o8 bo shall fiud to be dus, laware 1« the only one, loyal during the war, which mention will be made here- its distributive share of the direct , ned to it under the act of Augus! 1861, "I he amount 8} joned to Delaware was 74,053 and it + s supposed thiit the same would be allowed when the State ¢ u.m& Yts milit. ry accounts with the General Govern- Upon the refu-ul of that State, however, during the at'yenr to autho: ize the payment of the tax, the luternal officers of the istriet were instructed to proceed with ment and collection under the power col Seetion 47 of the act of June 30, 1564 of the State, commenced several months far that collections of the tax will very artly be mad »l o, "The position of West Virginia with refereace to the direct tax law i# n peculiar one. The apportionment to Virginia of §137, 550 53 was made before West Virginia was created ont of a rtion of that State; and while the direct tax commissioners ave prosecuted tiei lnbors in Virginia in conforwmity with the fm. West Virginia has not been authorized to assume ment. Inte f them by ment upon the lands ago, hus progressed 8o net her apportionment, nor, indeed, has its amount been ]Ir\lp'rlg determined. s officers and fts representatives in bot branches of Congress have expressed their readiness to dis- churge their obligations whenever lhv-rv are properly established. The apportionment should be made by net of Congress at its next session, and the priviloge of its assumption by the State be given as io other cases. INCOME TAX. That portion of the law of 1864 which relates ‘to income was but lighily tonched by the set passed at the last session of Con- gress. Varions amendments to it were adopted by the Houso paterinlly improving its symmeiry and gen- S but the impossinility of their pussage in Jor the aunual ussessment of the current year, and tho ressure of more important business, uduced the Senate to de- For therr consideration. They will probably be presented again ing Winter in'a new bill from the House. 0f these amendments the most important was, perhaps, the exemption from tax of §1,000, instead of §600 I8 now pro- vided. Tt was, of cours, m?nrpm of the law to exempt 80 mieh of one's incomo as was demanded by his sotual necessi- ties. Six handred doliars was believed to be the minimum ex- pense of snoh at the time of the passage of tho first law. Since then the fnternal tax npon commodities, the incrense of customs duty, snd the depreciation of the currency. have wrought an almost universal advance in prices, and I believe the same reason now exists for the increase of the amount of exemption whick at first red an; rx"lnrlhm whatever. ‘Should this change be mad, there should be a corresponding amendment to that portion of the law relating to the tax upon laries of persons ewployed in the service of the Generul Goy- season duriny ernment. In determining the amount of taxable income under the present law, profits and losses from transactions in real estate are considered only when its sale is in the same year with its chase. Thia arbitrary rule is not made applicable to per- ual property, and, es there scem to be little roason for its ex- istence atall, 1 believe it should be amer. “The present income law expires by limitation in 1§70, OTHER MODIFICATIONS OF TIE LAW. Varions amendments, in addition hat 1 have suggested vertised to'be lat tolcontract, from 1at Junuary, 1866, | the Sendwich Isiands does not, in e o it from a1 July, 1668 ; but on & large nuiyber of | sonable doubt, but the pe o rog F g R o Pt d e e rcelod unier ho wvertsemont. and | #houkl be gruated is o question exolustvely for ths determines ot many others the bids were extrevagantly high. Tu the latter | tion of Congress. A wise and liberal policy toward & national cnse, offers of the bighest admissible rates were submitted by | enterprise of this maguitude weuld seem to Justify roleaee without imposing onerous conditions, in cousideration Tuereased oxpeuses ncurred in building shipe for the A great size nnd augmented speed, as well a8 of the vimportans public iutercets involved in the sucoesy uf the lise. APFOINTMENTS. The number of pok chloes viabinLed dusing tho e number of post- cstal o Damber discontinuod- i ey Inereaso u{lufllcu.. bk h:&n&ao post-oflices in operation on the riment to the lowest bidders; and in some instances re opened through special agents, postmasters citizens. By all theso means combined, the amount ated Les been obtaived. S stracts in all the Stated named, except Ten. o0 the Juth June, 1867, New advertisements, " service from IstJuly, 1867, are now being isst is hoped ull routes of reai utility in the whole scotion will be let. LAND ROUTE TO CALIFORNTA. of the Department, the overland mail route to Culifornia, of which Atchison, Kansas, had been the initial point, has boan chznged %0 as to have two points of departure— one from Junction City, Kansas, ou the Union Pacific Railrosd inviting propos By a recent orde Toute (enstern division), ranuing from Wyandotte, Kansas; and 1 e T rvsiko, T2 the. Usise Postie | - 1 orsead I ey Railrond route, running from Omaha City, Nebraska. The | Number of offices t to & lll'm" l(}om these two polnts meet at Denver City, in Colorado @088 0 2 eossvesai 09 arritory. i Number by the Postmaster.Giencral. ... T Tho Junetion City Road connects at Wyandotts with the e e B v o g B g gl B el Bl ot o o il Lipnder o way connoction with e Kusiern ‘ctles, By ths route the F 4 stage travol is diminished 168 miles, an e time occu] Th 2 e T e oty mant 10 snd fom | peiostant i, O R ey st ial iyt Culifornin, which before were sent via Chicago and St Josend, requenty oriered, on the 15t of Augut et to B aggregute compensation of §569.236 41, sent via 8t. Louis, Wyandotte, and Junction City. The reports DD T, NUMBER RECEIVED, 'The wholo, zumber of dead latiars roseived examived, .g:umeei’;alfl of ljw muhu Tuaning of "3 ::um‘ -sn?a“un 1 change took effect do not show the average diminution of time ‘abou in the Y«rhrmm:cn of the through. trip which the Department g.':."'m%".‘fl:{ :h:n”:;'&n,&‘&%mfi.m |- was o to exgect, though the capacity o tho toute for superior | Diiiccs. About 600,000 other. letcers. weee reveived. H.‘l‘" n expedition is proved by the fact that in one or two instances ol 3 Sxpedition 1s proved by Lhe (0t thah 3 0.0 ays froms Sk | Eeiirastion oe Theatbis iy T aon s 8, accoint o ¥ranciseo, a day less than the shortest time ever made previous MONEY AND OTHER VALUABLE to-the change. = Subsequently, however, the extension of the ‘thero Chiongo mnd Noreh Wentorn Railway to Omaha City, which s ,:m!.m: Ry e By gl 4~ sary to form & contionous line by rail to Fort Kearney, | ward, 32,814 letters, contalning an of §2i4,5% 99, T B O e "o tho 13th of Novombet | waieh sumber 57,015, contaisiog UL 13, wors ek instant, orders were issued to forward via Chicago, Omaba City | being 9 per cent. The number of letters inclosing sums and Fort Kearney, ll mails destined for the overland routs | money loss than §1, remailed to the respective from the distribnting offices at Portland, Boston, Hartford, Al- | wus 13 &4, containing an amount of §3,632 55, a bacy, New-York, Philsdelphia, Pittsburgh, Buffalo, Cleveland | ghose, 11,175, et £ ‘were delivered. and Detroit—the expectation being that mails from that portion ‘The number of lettera containing of value other thas of the country represonted by these distributing offices will find | money, as deeds, bills of excbauge, checks, &c., recei Ueir quickest transit by the’ Northern route. iered and returned for deliyory to the owners, was 26,61 FOKEIGN MAIL BERVICE. and the nomiual value of the therein was §7,526¢ STATISTIC, E#L 6%, 'The number of these letters delivered was 24,053, belng 85 per cent. The aggrogate amount of NUMBE& OF OFFICIAL LETTERS RETURNED TO FUBLIC DEPARD upon the correspondence exo [ostage, sea, taland, and forelgn, angud with foreign countrien, was t §2,289,2] : being lulrlnl;.r’uueu l:fi:.‘fi:;o'm. a8 com| oy the previous year. Of this amount $1,840.800 92 accrued uj ber papers returaed the mails exchanged with Great Britain, mmm::?d.p.d g was |1,£2d PV » m;’l'l. ""’fh"m‘h and likl‘gin ! n‘l'.‘ -'M'LZ) on mfl‘f“:f’c'gll! 1{. number of letters soldiers’ fllflm and 0” with the British North American Provinces, ane ), on | mili papers seneral’s l;‘..- MmmPumlr-‘nl'bdlrn:h;,milndflm and from the West Indies, a,;xs'..r’ PL IS8 AR Gy 5 xico, Contral and Soutl merica. 'MBER OF exion, Contral and South Atmeries, o employed in thewervice | Abost 2500000 deed Ibiets have bode Sisiroged dering 6 of forelgn governments, conveyed mails, the postages on which | year, Of these upward of 60 cent were amountod (0 §973,109 23 and those employed in the serviceof this | tirculars, advertisements of lott ent notices t(\nnm nt couveyed mails, the postages on which amounted to g: corporate societies, and tradeswen’s u%m remainded 05,691 69, ing e of letters OCEAN TRANSPORTATION. Intel mbrl.:-.po“‘l SO SN A h-' CAUSES OF THE NON-DELIVERY OF LETTERS, An investigation into the cause of the non-delivery of latters confirms the statement made in the last report, ‘that threes fourths of the whole number fail to reach the parties through fanlts of the writers, and it has been that the proportion of letters fully addressed returned from offiees where the free delivery ia established is loss than 3 per From soms of these offices returus have been roceived, which not a single letter so without & The cost of Transatiantic mail service performed by steas ships employed by this department, under the provisious of the existing law, which allows the sea and inland postage to Ameri- oan and the sea postage only to foreign steamers, was §525, The cost of ocean transportation of mails to and from the West Indies, Iy steamers receiving different rates of compensa- tion within the limit of the postages, was $57,871 69, being above, seem necessary in order to make ¢ ad positive what ismore or liss involved aud donbtful in several parts of the Iaw, bat their propriety, can be more fully and satifactorily pre- sented to the attention of the appropriate committees of “Con- when revenue bill is befors them than within the proper uits of this report. The immen enue of the last fiscal year was raised with probably less pressure upon the peaple ‘than that of smaller mmonnts in previous years. Their enterprise and wpirit of acou- mula ciited the depression of bus which or- ieayy ta. . Their means for the uitimate Natlon it are rapidly multiplying from d the constant development of new action of taxes will stimulate pro- y ne Natlonal debt will cease o bo of anxiety or even sanoyance Lo a (.t united dinarily atter nsual demands npon this offiee, arising from the exten. revenne system over the South and the radical e in some parts of the law from its recent amendment argely increased it labors and responsibilities, ully neknowledge my indebtednens to the Honoruble v of the Treasury for Lis uniform support, and to the curs ard clorks assoctated with me, who have faithfully and ¥ od their duties. I am, Sir, with great re- ¥pect, your obedient servant, K. A. RoLibs, Commisstover. Ton. H. McCulloch, Secretary of the Trossury, ——— REPORT OF THE POSTMASTER-GENERAL. PINANCIAL CONDITION. The revenues of thi artment for the year ending June W, 156, were §14,366,96 21, and the exp 2. ditures §15,332, fnerease of the latter of §965,093 09, Antiel 1al appropristion was made by act 1864, o compared with the previons year the Increase of expenditure 12 per cent. pristion for free mail matter, on of the revenues yet remaining y for the past year is only §205, ut estimated in the annual report i $91,141 of aimou cumalnted in depository and on of the “finance office” of 5 ed by the Auditor, by postuasters for salaries and 2 041,054 3, oflice ‘expruses, #. o 4,256 44 EATINATED POR 1808, The estimated expenditurce for the year ending June X, 1808, are i 5 per The revenucs, estimated at 5 cent Over last Year........ Appropriation for fres matter. . 2 Je u;u; the wmount of United States postages upon yed. he nmonnt paid for serand isthmus transportation of the malls exchanged with Central and South Americs, via Panama, addressed factory reason for the non-delivery. From 40 to 50 per cout dead letters are returned from these oflmudumu oppears that a more careful atteution to the def of address on part rlvnm:flmgmhervm " mm‘::uuln uo.‘olm envelopes. would materially promote the certaint M,m,mmmnmw«dumv i POSTAL MONEY-ORDEE SYSTEM. The mabiel e nies, slons Rowin :p-nuuu e num| money- of now being 347 more than at the date of the last annual lma measures have recently been taken to establish offices in the Pacitic States and Territories. - NUMBER OF ORDERS ISUED AND PAID The number of orders lssued during the year was 243,609, Of 410 VAIUO Of.cvvevnsrrrnsrarnnssnees. §3,977,250 89 Tle.‘nlm“t:erpdfil'llmlfl,of tho“ - To which ia to b added amoast of orders repaid t0 PUrchasers. ...eeee 52,050 T3 » BALANCE DUE FOREIGN POST DEPARTMENT. The excess of postage collected in the United States upon the corresponde exchanged with G Dritain aud the con- inent of Kurope, was 800,627 United States on ae rega particulars of the v} erations of the foreign service, reference is ke to the Appendix and to the report of the Auditor annexed POSTAL CONVENTION WITH ITALY, A libera! postal convention has been concluded with the King. dom of Ital reforms in international powtal inte . recommended by the Postal Conferonce held at Paris in May, 1965, ..%.:1lam wod signed at Turin on the Sth of d the ratifications thereof wero ca on the 14th of June, 1866, This is annexed, will carried fnto is received from the Post Depart- ¢ routes of transit by which the e e 4 bags can be effected, NTION WITIL GREAT BRITAIN. ritish Government, under date of to terminate the existing postal execntion as 800l 48 not ment of Italy of the change of corresponds BASIS OF NEW Notico was given 1566, of ita Excess of s the issues over payments.. hufluh!:uol!h 313,577 06, On_com) th sponding xmum-m busivess has been almost trobled. AVEHAGE AMOUNT OF ORDERS. ";n;nm" antount of each order issued during The whole number of duplicates was 1,432, of which L194 10 replace arlfinh Ioat in the mails or O 10603 53, belng surplus funds acerulng ot the 'be sum smaller cffices from the transaction of the money-order busts Dess, was transmitted to first-class offices used as tof January, 187 pail subsidy” contriot with the Cunard live; accompanied with aa nssurance of the desire of that Government to conclude anew couvention on a more liberal basis, mlmn‘fi.lno resent rates of internationsl postage sud granting e rge5 mail facilities. Tho necessary steps were at ouce taken to accomplish that object, and 1 have the satisfaction of announcing that & relimnary basis for a new postal cofivention has by the two post departwents, reducing the internatioual rge on o single lotter from 24 cents to 13 cents; admitting R o lxumh printed matter "{;'.'SH hx&mmumm (:“ cither by npational bank drafts or in sandise, 8t such rates as the dispatching country sha witablish; aad granting to each couutry: reciprocally, the right ‘x%fi"‘.fl“mw‘“ ety e s tin g el g e | agn, or in the ordinary mails, through the other, at the sume rates of eharge pald b inhabitants of the country through which the correspo is forwarded. The principal sdvantages of the new arrangement may be brietly stated o8 follows: reduction of the international letter postage to one-half xisting charge. The removal of all restrictions npon the exchange of printed matter in the mails at reduced postage charges. The compulsory prepsyment of postage upon letters and mail waiter, avolding eatirely the keeping of complicated @ necounts Lpon iniernational eorres, noe. reduction of postage with all mfizmnmn to and e in closed iz : RECEIPTS AND EXPENDITURES. Recelpts : Fees on orders fssued...... enens §35,799 Premiun received on exchange. > 308 ] FExpenditures : Commissions to postmasters.. Clerk hire... xoess of expenditures For overiand and Folsom, avd the tween Now York rvice betwee tho United Staies and same poriod. .o v Braall, for (Soe Appendi) {on s to the finances of the dopartment o full and sstisfactory repurt of the L A AND STAMPED ENVELOPES. ), represanting $20,50 ; o decresse of §a0s, 708 25, a8 compared with of stamped envel he year ending Juue 30, 007 45, an increase of 12 ¢85, 54, represent: 24, 55 % per cent; being larguly {n excoas of os during wuy previous jear swee the utroduction of stomped envelopes. The sale of stamps, envelopes, &o. during the it year amountod to §12,204.720 54, or §216,061 2 wore than the issues, showing the absorption to that exteat of ¢ ck_remsiniog unsold iu the ters, which amounted on the st o Appendi.) s aid stamped envelopes during 1t of July to ist of November, are respondiag p aa ono wmiliion of pea and stampad wrappers W, 25, per annui. REQUEST STAMI'E The increased demand i printed cards aid requesta ENVELOVES t of July for envel r returning direct to t uptly delivercd to the address, is very pof . per o ovad noe of such 67 slopes wil tead largely to reduce the number of dead letters ALLOWANCES TO POSTMASTENS KOBBED BY ARMED PORCES. Duning the year, 6 cases of olais, o1 & robberies by armed. forces, {ovolving an amount of #1226 05, have been acted upon. Fifty s 18, mmounting to 43,5 have been allowed under the provizions of tie acts appi April , 1664, aud Murch 3, 1w5, aud nive, smounting to 74 03 have Deen rejected aa hok coning within tho provisions o 3 CONTRACTS. w. There wero in the service of the department on the 30th Jl:]:'. 1865, 6,008 contractors for the trausportation of the e TRANSPORTATION STATISTICS, Of mall routes in operation there were 6,990 agpregate longth, 180721 milos; aggregnte auidual transportation, 71,007,924 wiles ; aggregato anvual cost, §,630,474; including the compensation of route, agent, local agents, mail messen- gers, postal railway clerks, aud baggage masters in charge of mails, via : #779,710, the aggregate auuual cost was §5,410, 164 “Tliis service was divided as follows : Railroad rout length 32,032 miles ; annual transportation, m.w.l 367 wiles ; annual cost, §3,391,502, sbout 11 couts per wile. Steambont routes: length, 14,346 miles ; annnal transporta- thon, 3,411,902 miles ; nunual cost, §440,544, about LJ ceuts per mile, Celarity, &o. : routes’ length, 134,453 miles ; aunual trans- portation; 37,816,465 miles ; aunual cost, §3.79¢,0%, sbous 10 cents per mile, The length of routes was inoreased over the preceding yoar 38,381 mil o wunnal trausportation, 13,624,420 miles ; and cost, $1,993,500, the increase arising principally from the restoration of servico in the Southern States, MAIL SERVICE IN LATE INSURGENT STATES. herewith aunexed shows the rate of pay per annum portation in operation in late insurgent States on 1,170,529, com with the amount due endered {n thoso States in the year ending ,218; the difference, $401,311, resulting from the fact that much of the servico was in operation only m‘ of the year. Tho fiet postal receipts from those States for the snme period being §093,833, tho labilities (without neluding the compensation of route ageats, local agents, and mail mes- sengors,) exceed the receipts by §75,30. A tablo 18 annexed showing the mail service in tion In these States Sept. 30, 1866, eom| with the condition of the service in the same States Nov..1, 1665, the dato to which the statements on this subjeot were made up in the last annual re) From this table, it will be seen that there are in opera- tion in the States enumernted 90 railrond routes, with an aggre- » cost of 587,581 per annum ; 26 gregate Lnjgth of 8,557 miles, at & per apnum ; and 1,157 * star servioe " routes with an aggregate length of 46,4423 miles, ata 1,062477 54 per auuum—muking the wholo service States, of all w, 1,25 routes, ’u"""“ length of 60,170 miles, at a ocost of o4 per anuum. - Co dwith the service in opera- st Novomber, 1865—viz: 71 raflrond routes, with 10 miles, ata cost of §437,257 boat routes, with an aggregite l«n‘lh of of $43,200 per anoum; and 154 Tatar ufinnh of 8,186} miles, atn z oF ALBUDL—there an_inerease of 19 rontes, 1,928 55100 miles, and §150,54 annual cost of rail service; 14 routos, 29714 miles, nnd $102,005 anuual cost of steamboat service; and G55 routes, 36,2364 milos, and 554,734 54 annual cost of **star service "—making a total inorease of 1,016 routes, 41,672 56100 miles, and 41,137,363 54 annual cost, Another table is sunexed showing the number, tormini and Jength of Southern railroad routes not in operation September 30, 1866; the sumber belag ouly fourteen, and the aggrogato Tength 96 12100 miles. Uinnrrlnx this with ninety routes in operation, having an sggregate lougth of 81703 miles, shows & remarkabl progress in the resusoitation of the railroad system of the South. ~ There being 2230 routes in all the States enumerated, those stalements show more than half tao whole number to Lo in operation, comprising noarly 1) tonths of the ralliond routes. ALl (W oulca in these Biajes v ere duly ad- for service actuall with that date, gnte length of £IT4 miles steambot rontes, With an g, cost of §195, (celerif cont of now in operation in with an cost of Bich correspondence is transmitted in the British mail, osed bags throogh the Unitod Kingdom. o catablisbment of uniform and reasonable charges for nd territoriai tr espondence in closed mails; Tanting to each post rtment the right to make use of Fxcess of recelpts over ki Tliis sum represents the gross amount of revenue Al il o wuder the nutbority of the L AL ik ot o dispatch of nvience cither s open oy closed | 1T e 16 e dmiaet haee. mai Sathe termis as thoso applicable to the tuhabilants | forehe amoany of the deficiency in the reoe of the country providivg the moass of transmission. D B o i piage ot crnatonal leters 0 belong whollyto | RGO ighh monide it G the dispatoing country, and nocharge whatover to be made o eceiviog countey ui deivery. {’ stated tn the lost axwnal ropest, Vi oA Kach pust dopartacst 1o ake ta own arrangements for | 7yara ramaine the sumol. we Lapateds of mails o the atier, by woll appointed ships, sail- | 5 e LA Lt ks s f Soch ipe 1o (16 As the proceeds of the system its up te ou stated dags, aad to pay ibo owners o ¢ the mails which it dispatches. Yoen ngreed upou for carrying the new con- yertion into vperation, but it is confidently “expected that the Tiritish office will vousent to name as carly s date as practicable, that the publio my Lout unnecessary delay, the benedt of the reduce of postuge, a8 Well as of more frequent ineans of mall commauication between e two the close of the last fiscal year. “The cost of blanks for gu&lnt-l. which are furnished the Department of Publio Printing, is not included in the going statement of expenditures. ADDITIONAL LEGISLATION RECOMMENDED, Tho preseut charge or foo established by law for an order of twenty dollars o less s ten cents, and for an ordnnotdfi twenty dollars, tweaty-five cents. ' These rates are defective countries. The Pecis Mall B pauy of New-Vork, to which | 1,:ong, fnafmoch as two orders for twenty dollars each was awardod th ¢ the Clina mail service, suthorized | (50 i but tweuty cents, while for a single order of forty dol- Dy tho act of February 17, 1560, has exccuted contiact for thet | [y ' would have to pay twenty-five conts. Tie manifos dency of this state of things is to augment un: number of orders lssued, involving s waste of time and cal labor at both the issuing and paying offices, as well mmmm the liabliity to error. The adoption of an addi rute of fifteen cents for all orders of more than ten, but not ezs oveding thirty dollars, without any ehn;? of the present fees for orders of ten dollare or less, or for orders exceeding thirty dollars, would remedy the defect in question and promote expe- in the transactlon of the business. ularly those l:c.:'ud at mm: very greatly payment of orders constl- service, & copy of which is aunexed. The mfn reputation of this eompany, their experience aud undoubted resources, and the zeal aud energy Wwhich lbr{_ have manifested in makin, preparations for the service. affurd a guarautee of the success of Tiis groat national enterprise to extend and develop American commerce, by obtainiug control of the vast and cumm.s‘v fn- creasing um{» of Japan nud China, which the advantages of our Duical position skoald enable us to possoss. he conteaet is for monthly trips between San Francisco and ¢ Koog, touchiug at the ports of Honolulu in the Sandwich Islauds and Yokohama (Kazagaws) in Japan, both on the out- ward and inward by o lize of first-class American noa-going side-wheel o ps, of not less than 3,500 tuns bur- den, Government measuremeat, and of sufficient uumber—not less than four—tio \u‘rlunu the stipulated service. “Tho Great Republic, the first of the new steamships buildin cle Mo veeds the number issued, tutes the chief business of these offices ; aud as the compensation for paying being one-eighth of one cent on the amount thereof, is much less than for issuing for whis receives one-third of the fees, it 15 recom " ¥ for this servico, was lsunched at New-York on the S that the commission for payisg orders be increased one of November inst., 18 now receiviog ber machivery, and is ex- | oioph to one-fourth of one per vent, 0 as to afford 4 10 be redy for sea about tho Ist of May, 1867, She will | S0 offioes o compensation fonate to theis services. Tecister over 4100 tuns, Government measurement, o 1,100 | %'y cogq of the loss of s money onder, the owner, in order to obs tuns more than the minimum tusasge named in the law; ber | goin's duplicate A Byl =Py extremo length 18 340 feet, extreme readth, 50 feet, ‘klpm of | under oath or " setting forth the loss or destruction hold, 50 foet, when ordizarily loaded will be 20 feet. The second steamship, of similar size and proportions, i 1o bo launched early in Decumber of this year, and will be pro- pared for service Jmul the 1st of July, 1867, and the machuiery Jo¥ Yo othiers of like dimensions is in course of construction, A her draught of the oflTnAL ‘together with a certificate trom the postmester by whom it was payable, that it has not_beew. and will not be paid. A certifcate must also be obtained from the lssuing Ioaster that the order in question had ot been and will repeid to the purchaser. In the majority of cases the 0 loss of the ‘At iuspection of the hulls and machinery of these ships, as well s & goneral knowledge of the preparations by the con- tractors, has satisfied me that every possible excrtion is being wsed to fuli}] the requirementa of tho law and coutract. "o company have tendered thoir first-class steamsblp Colo- rado to take the mails rom San Francisco on the lst of Janu- ary, 167, tbe day named ia the law. ‘This ship, which s been withdrawn from the Panama and San Francisco line to prepare her for service on the China route, s of the required tunuage, and will, it is believed, fully xm‘\)l{ in other respects with U terms of the law and coniract, although the report of her in- fuformation with regard to th limited to the fact that it was ma s bus failed, from csuses unknown to him, to reach the person eds dressed. 1le is oblij however, to farniah & statement to thad effect under onth (which is to be administered by the postmastes without ch:!m. and to defray the cost of five cont stamp affixed to sueh statement. This additional expeuse burdensome to the owner, who is be for the loss of the original order, for which had .hwlmy' been paid to the Department, having undertaken, in consideration of that spection by a naval constructor, nader instructious lutely given sum of money rej ted by the ordes, 10t Seurotaty of the Navy, bas not yet boen recelved. e e tnat duty without saactiug a2y farthes compD In tho building of steamsliips for this line, the contractors en- | wovion * Experionce, moreover, sbows that certificates of countered a practical difficulty, arising out of two Nnflh'm.{ both postmnaters afford complete seeurit) inst the eITONCORS conditions: first, the necessity of cnmlmcungnl that could | L0 o o duplicate in liea of an order ;s’.fi,‘.’fim been patd. make the long v 0 of 7,087 miles botween oisco aud | 1¢"\would seem, therefore, that the legnl requirement from Hong Kong, by the route nazied in the law, with safety and | Tl of o sworn statement as to the loss or unneceasary, a8 well as onerous, Tegards the main object for which Congress suthor- | (8000 oinal is ent should be nbolished. ?‘u similar reasons no charge whateves e hment of the lie ; aad, secondly, the practica- bility of sncuring that object withont making tho ships so large S s - a1 preelnde, by their Keavy draught, the possidilty of enter- e e S fenoms, aralid Apaste s T T g 0 harbor o Tonalis, 4Yich s 8 doplof water, under | Uiy cof e i date,or becauso improgerly iadorsel i o fuvorable circnmstances, of barely 21 feet. These two con- | ooy Jthe invalidation of the order is in itself & penalty for any dm.m{-. they alle hwm {om:;{mw r;- lncnnlllmlrlu. ::x.l'lhh.r_v negligence of the , who, on 'fl"m Trecel thorafore assumed the respousibility of so constructin \ rorsapd - vy 1o attain o ore mptrant affes of the bt ,m-hfi' amess o€ Na Maner by meats o' ““‘“'m oy necessarily plactog & practical culty in the way of the ac ) have e Ahment of the losser, bolievin is o be the only course mfi‘:’,‘.}";fl:,‘:fim‘:f;mfi ""'1::“""'3 open to themy without disregardiog U o min ends of thelr ot | hyocs, “Thoso persons had provicusly throughack of, preosts tract, as the wisest for the o eres »d ), il s UL 1 AL IS % B | e e in sy Pt moted consequesitly, bulldiog shipa of much _greater cost, by consequey, g "asd proportionally more expaneive | OF 1P STler. To forge or ounterfelt & order 4s Penal offense by the act of May 17, ek, bat there 18 w0 to keep In service, than was Decessary to meet the of the payee's si lo hrep 0 T " hofaw " Although the law, ana | 500 1Y 10 PR L L e oten "‘,j:..m the contruct executed in pursuance thereof, name Honolulu as | ¢y ) there is & for tional an intermediate port, the fact appears to be well established by | ¢ W“"'d' an uate h._”""u,, it, as well as for any ok vellable official information, that the laws which govern the | ¢y ¢ to obtain wmn.( '» money order by frsudulent means. Dayigation of the Pacific Ocean, render it unwise, if not incom- | 2 iootfully subimitted : tible with the complots success of the enterprise, to require W. RANDALL, Postmaster Geaeral e steamships o tonch at the Sandwich Islands on thelr pas- suge bet: San Franeisco, and China. Shown by the o) no(w :iw«lwr to thg.n Senate Committee on . (U Otlices and Ronds, dated June 11, 1866, in which are em- bodied e us firnished by Rear-Admiral Charles H. | 1 s, paier of The N. Y. Tribuns. Davis, Saperintendent of the United States Naval ()hnm.t:m made in your respecting the r route to be pursued by steam ve Sir: Anunfavorable report having beeu L hend it o P Gt byl o Pchin Koy | ot o R o e o gy Tprch Wi ong Kon, e ad- Tm"finf lb‘ ‘ru‘l' wish to state that I'am innocen! 3 eah and San Francisco, so Ffl;tl:l;u st vantages as would amount to an absurdity to seleot the with speclal referenco to speed; Water with engines of enormous power, woaus of wlgwon. At any rate, Wwo must also pnpndwu-numudnl dln‘lnnlg 10 those who will obey the lawe ton 0 Eastern voyago appear to They show \hn{ touching at the from China would prolong the rily; that an of steamers lished, provided the intercous: China to acquire that importance whi A careful consideration of the o carote conaideration of e NS 0 hecomuor I thak, ort That the steamships of the main line betwoon Sa ;rl:;um Tmfi&cufiwmm“qwm touch 4§ Outario, Friday mfl'"’ wers drowned. Three Lrought Lore (hly