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I I im uuuun iuuui luciiu i u g ?Wii ''. . . " .11 I COLUMBUS, OHIO, FRIDAY MORNING, PCK -UiH irl-.-t. ,''ill:!,iii V7ri? a J. v. ntilld:lin!) taint if) ft.,,., -n.,;ff..'f p..fr.rf, I Wett Jfa aEl. Vi I 5f Is I I I NX-A 1 . tiTiv; Ti: V.w. f,.,'..,,, ,.m,.ff,.1 ..,T Is 1 . i 4 ut I i s x I r ill -II- i ffwjr A Vi. II i i I i, i.i ., t . .1 it. J m .' ra. SS "V . . . .., ,.i ,iv- . k .-..i V.., 4 . . A4 .. i "V Nt , V, V-. W t -".A.m...ii i..t,,;.(.ui'..Ji.. I ' :- V 1 . (.i?.ix':.Hii.,) .,.v e'riatt .ia lo fciff ...... . ' tgrs-: m, i, ! , i . i , , !1OT1PPOTMCH STREET. TITf Snjfteelrihtho largeuknd beBtVelected stpc'of -Vronsht,tathi market, for Iha Fall " MHva.w BUM Wlwq UUUll BIN laditio their 4nteret -to eaU arid! whtrt. igb Street, r.l j ml . . ."( I ) t'J Vli'V ,lr. 4. .. o't .... : ' i X. B. Th T"rJ nrin led by -ihjs Caje X' V- -j ; iji.fi ! ; f r andi Winter Trade which fnr diirahl'iltvan 1 .wI'J'P RE TO ORDER flrat-daas ifiJ jatest styles. The pub eiamlno our work befpr purchasing elae KINSE Opera House Block. it Dozen, on the most reasonable terms. f!T::i .. ,---.7 He al v Hade (' I ol Iii ri ri 5 i;:;:;-;;v'-!rM FXL AHD WINTER GOODS N9.S5 pn lllRh Btret.CluBiltia. - . 1. . r i. - -a MlwvkVMmilttVlItr l'oianilr LKaWthxiki to lhl bira luA th liberal' Datronata baatoirii ow thair wiaoiitatMni tmce iu anmroebOa)i,aDa toaa ui tbair paU-un, that their affurtv ahali . arer ba to raodar entlra aatiafaetlon, by makitig up larmanta, warrantod to e f rum first elaa coils, by competent Workmen and fa Ikacearetel. Wea'enow reoeir Ing, and thaU ooainua to4o io, naeklj daring the ..itfi - . ,.n . . t C'JFALLANO WINTER STOCK. For 0TrcQatv mi BwAnm Suits, Ciqalmaai, F. nrf Hj Unvan, f ttot Clothf , Beary TrieoU, Castor Bearera. (Jhiuohillas. Hear Milled lmpoite-fr.KDglaadi.FraDCej WgiMim and Hwitaarland: eret Wnuaht to this eifrrV tu alt hiah jraiDTita UMcattentioivoC. the aeatlanien xf Aolnm- auendtiisumnnrtcfmnerr.ssnrlnrnf!ii to at at faeilitiia. nib.balng WQrluneo.ouraplves, enables as, not only to kweb batter WotbiW it sell Ciuar- Ba thane iotbar'naeaianibi(y-"' ' " READY MADE DEPARTMENT In thejlneof Ready Made Garments, our Stock is oli !ote, ami In tins eoniieotlon, we dasir it to it Otittur stood ua we keep Hboddjs r good of io ferior grades, all being manufactured to order, and xprsasly for thires taolisbment. - - THfECNTtEmEN'S FURNISHING DEPARTMENT li"r replete wi I ..I ci j.-... irith erei erartiole pertaining to the Gen- tlsman's outfit. J t THE O. M.T. OCO. aprl7-deodiy4i"H Ercry Variety of. Family, Supplies, Mtt 5i4 mitit i;l t hwfin n .imih., . ' iMtoxnjf imi domestic 7mesc Brandies, Cigars, etc. -j.i'roprieiors Columbus- Powder Magazliie; j AGENTS FOB SALE OF . n ; ,1 h florK'I ! I n''ii'''j t- jt, -.a. Etlpps t Co.'s Sugar Cured Dams, ,aeiivV''- to '" i T Tip frrr.' 1 JClw.Vt on handj the test brands df- WUtTB WIIEAT FLOVR. TT tf'.wm ITUITIs HOSE,! f ;'i1 titux iH! ,IW1UH I'liAlalt'' etJ lliX eel lii f j , us ; , . t , ' .. i-U.ls.t t'Headuarteri fot1 : f fESH BALTIMORE OYSTERS. ;' eUSERI OLICI'TBD. '' ' levt rfWir -'...' ail imi-fi-,'.ai.-:.siWy.. A All gooils deiirered. free of oWge, lo any part of1 iltjril .! v;ti ! I-, i .;' M'C0LM,MItKS 4 M'DONALDH, . , 1H4 an 186 South High street. IVaui '' iii'.i'. t i I! -r '; iW'ijOMlO STATE - rmnii utr in ah .i C1KCIJIH ATI, QUIO. 2 J .' . fTwIi. -'is .. , f '"'v' l;'"io.uV-tiT. stock n.t toiibf. r; bcorporat4 , Uprlct .General , JLaw; , of WiioC eWdumivJ al m4 "hh nil h "V; ;v..:, J . I i. m ...Himoi ,,rlMTU.liWlpiNri.laBut'1' tRf O; COwtAotf A. 8aetarr'i' rii- 'i " '' t fJ 3' j.l J I,- ? I 1 'Ml .l(iM;.-ytf'!tu. ti. rtt . .-. i i i ;, .j tjit 'j-)i.a-' .. t--'.-A JTw M, XIROWE. Ageate jw'teiina t JFoawirFicU BoiuiiKa,' - (:' iiyif irspiER. rCai Lit JeKSIUtTeDs 'aK ' Ali.11 LESS X soldier, wher tout his arms at Lookout Moun tain, bas inrenUd and patented a - For fllTarVttint EU irtldla of plated" wawauoh SI spoons, forks,, Gorman utiver, tea sets, , cups, !, lamp tops, bella, door kn .bu.or braal Ware ot any description, better and ebe.per tbaa by any tnerprooesa, and will last longer. Can be applied Fat id in but- BT any one on any eixioie oi oieiw, tie .mit proper aireoiions, ana- aeut anywnere SrepaidorrreoiptofONB COLLAR. Kaoh'botila . -Mkflf Mltv .ilWAM. MI Will ma oina)ia4enM 'rthof jpi family, man year-; ;;;;, i . .IJ.UDI . w ; li cimrrVt vlt ma WilhTfir 1'outLkaviia, flf 5 I EW GOODS ! NEW GOODS ! t; Jl,llj; IIEADLEY & CO, Bar just racairad a splendid atoek of GOODS! , FQB THE- ; holidays, ; CoDiiitinff of .V KESS GOODS, . r j ... SILKS, POPLINS, iMPilESS CLOTHS, ;( '.I MERINOES, S't ,- '! i DE LAINES, ivy''. ;r Paisley, Brochc and Plaid Shawls, z ji r.u 1 CLQ4JCS AND: PLOAKINGS,:j: 7 !?J'T ,U A n, If hfi H- '1 KNIT ',J s t AJJD iBALMOR SKIRTS, .O fn-'if ou fivro'? V- yD . i- !'.. pOSIERr,- GLOVES, &c, Ac, Ac. 5 -V, 1 - v mi sunt A LARQBT STOCK OF II i j v ..v fi.ft aso a a5soimi men theet. deed' i'ivV. c.J ;i . 1 , A". ; '' Joant W. Oacr. WlLSOH 8. KBICMO ;NLaO hAYLIB,- illLTOH 8ATLB. T , CSEYf I S1YLER V RENNONa Attorney 5t Courislbrs at Law. ; -1.-1 -.'iu t -in y ,.. I ii.! l-t " t;w nr.l r i HOVr 7r WEST THin STUEET, IoTtf-dSmeod JHUITTER'S t,. ir r nnnr a, -uiuivtiiuu, rib: siasdtith High it:,1 IBf AVE JTrtT' H B CB1TK D TITE lanteetand finest itMh of Fall and Winter Oood' ever naa'tt.to liiiaeifc, eonsitiiug of . j .. . -.:n Domestic Clofhw, i"Tl'''i,i' ."Oanaimeret)., teo.; far Ge'atiames'l wear, which I will sell at th low eat Cash prieaa. ' '' '. ,'--i Also kep constantly on hand - a wall seleoted stock or ' '." ' R S AD Y MAD E CLOTH IK G. , - " ' JOHN HUNTER. jfes: .AJ.Diid ! ' DVttouUi liuastraat: ALSO . THE TREASURY DEPARTMENT. Report Secretary McCulloch. Decrease of the Public Debt—Important Recommendations—Reduction of Taxes—The Process of of —Modification of the Tariff—The Banks—New Funding Scheme Recommended. The annual report of Hon. HUfrh McOul looh, Secretary of the Treasury, on the state of the national II nances, Is a paper of such paramount importance, discussing so many subjects of vitul consideration and practical interest to the people at Urge, that more than ordinary at torn ion is given to its statements and rcuoininundations. The subjects treated are ably and vigorous ly handled, and the report is, altogether, a most luiuluous state paper. . , , THE REPORT. : The Secretary opens his statement with an admission of the widely different result from his estimates inauo last December to Congress for the three quarters of the fiscal year ending June au, isou. men ne calcu lated that the national expenditures to the end ot the last fiscal year would exceed the receipts. by S112,1'J4,017 ; but, instead of that, the receipts exceeded the estimates $8'J,y05,ti05, and the expenditures fell short of the estimates $2ii0.o2D,235. The actual receipts, including ciisli balance Of f 07,158,' 515, were $4(i2.5(i4,42(), and the actual ex penditures $284,324,227; excess of receipts over expenditures tor tueiasi inreequar ters of 1866, f 178,240,193. RECEIPTS AND EXPENDITURES. , The receipts and expenditures for the fis cal year euding June dUi.li, law, were as follows: Total receipts irom loans, customs. taxes, revenues, &e., were $l,273,tx;0V215. Total expenditures, including $020,321,725 for redemption oi puDiic ueut, i,ui,072, 606, leaving a baluni c in the treasury, July l?t, 180C of 132.S87.541). The receipts up to June 30th, 1800, Irom loans were $712, 851.553: from ciistoms$17y.U40.651.58: from lands $005.031 03; from direct tax $1,U74.- 754.12; from internal revenue $.iOD,22G, 813.42; from misccllnneou8sources$07,llU, 300.91. The expenditures Include: lie demotion of public, rlebt $020,321,725.01; for the civil service $41,050,901 54 ; for pen sions and Indians $18,852,410.91; for the War Department $2S4 449,701.82; for the Navy Department $13 334,118 52; for in terest on the public debt $133,007,741.00. The receipts for the quarter ending Sept. 30, 1800. including $174,011,022 from loans, were $405,400,557, and expenditures $323,- ! 41,708, leaving a balance In the treasury st October, 180G, of $142,418,789. ' . DECREASE OF THE NATIONAL DEBT. The following statement exhibits the items of Increase and decrease of the pub lic dt-bt from the liij:li-t point, August 31, 18UU, to uccooer 31, isou : Amnnnt of publio ; debt Aug.81.16S,as ' per statement (2,813,907,839 M Amount of old funded , ' . , and unfunded debt 114.113 48 ' ' fJH4fl.6'J4,7'H 04 Am't cash In Treasury so.ais.OM 13 Amount of publio debt Aug. 31,1865, Cjlest cash in Treasury 13,757,803,888 91 Am't of publio dobt Ootober 31st, 1866, as perstatcment f 3,681,033,O6S 34 Amount of old fundod and unfunded debt 114.115 43 2.1181.731,081 82 Am'toash la Treasury. i:tt,3s,tM0 M Amount of publio dobt October 31st, ; 1B06, less cash in treasury !,l ,551,424,131 20 ! Net decrease 20fl,37,5J 71 :' Which decrease was caused as follows, by payments and increase of cash iu Treasury ; .... , , Bonds, t per cent., act January 28, T1847 1,672,450 00 Bonds, 6 per cent., acts July 21, 1B41, (and April 16, 1842 144.039 77 Bonds, 8 percent, act March 31, 1S48 617.4U0 00 Bonds. Speroont., act March 3. 1864.. 1.7(H,7oQ 00 Bonds, 6 percent-, act September 9, 1850 (Texas indemnity) V 456,000 00 Treasury note. 6 per cont.. aits l)e- roein.er23,lti&7,and ilaroh 2, 1861.. 8,200 00 Temporary loan, 4, 6 and 6 per oent., t aou k'ebruary 25, ltiJ.nd June 30, . i 18114 62,146,711 27 Certificates of indoblo Inoss. t par i cent., acts March 1,1861, and Maroh ! 3,1863 84.911,000 00 rreasnry notes, S per cont , one and ' two years, act March 3, 1863 31,000,000 00 Treasury notes, T 30, act .1 uly 17, 1861, ' 283,100 00 Compound internal notes, S per cent,, ' i act June 80, 1864.. 612,020 00 Treasury notes, 7-80, aot Juno SO, 1864, and Maroh 3, 1865 10,000,700 00 United States notes, acts July 17, f 1881, and February 12, H62 ... .... 134,610 00 United States notes, acta February 25,186,July II. l12.and Maroh 3, . 1 ! 1863......... 42.B30.174 0O Postal eurrener, act July 17,1883.... .: 8,029,738 03 buspended reqmsitious ,lll,ouo 0 406,533 897 67 44.108,803 48 Increase of oash la Treasury j Gross decrease 447,062,803 16 I From which deduct for increase , Bonds, per cent., acts Jul 17 and I Anguat 6, 1861 1114.730 00 flood, g per eent., act March 3, 1864. . 3,884.600 00 Bonds.Sparcent., aot June 30,1864.. 8,211,000 00 Hoods, per cent., aot Maroh 3, 1866.. 205.281,000 4W Upnds.S per eent., acts July 1, 1862. .. ' and July 3. 1864, issued to Central 1 " Paoifia Railroad Company, &c, in ' tarest payable in lawlul lnniiey.... .8,624,000 00 Fractional ourrency, acts March 3, , I 1803, and Juie 30, lHtil 4,173,007 45 (Groldoertiucates,aotMarch3,1863.... 10,886,880 00 ic.. rs... . 241,383.237 45 ' NetdeoreaM... 1406.379,565 71 REDUCTION OF TAXES AND DEBT LIQUIDATION j 'These statements are in the highest de gree encouraging. They are conclusive eviddnceof the greatness of our resources, and thetr clearly indicate the patience of the people under self-imposed burdens, and their unwillingness mat una uoucsnouici be a perpetual Incumbrance upon the coun try j I ',' ; ? I -itlsv not expected, nor is is perhaps do sirable, that the eaiue- tutw ol reduction should be continued. A considiTab'e dim inution of internal taxes, was etl'cccvd by the lanteudmentsOftlie Internal revenue law, at the last session of Congress. A' further dim inution of internal taxes, and a modifica tion of the tariff, which will doubtless lead to a reduction of customs duties on manv 'article, will be required, ( order that pro duction may be Increased, aiiU new lile infused into certain branches of industry that are .now languishing under the bur dens which havo been Imposed upon them. But, after the proper and necessary reduc tions shall have been made, the revenue will doubtless be suftlcicnt if the govern ment shall be economically administered, to pay-the current expenses, the Interest on the public debt, and reduce the principal at therate of from four to live millions per month. In order' that this may- be done, however, there must be no, additional do nation to railroads, no payments but in the fulllllmentof contracts, and no unnecessary expenditure of. money - for' any purpose whatever. - With proper economy iu all the daparuuents of the governaiQati the debt A I ' can be paid by the generation that created it, if wise and equalrcvenue laws shall be enacted and continued' by Congress, and these laws are faithfully enforced br the olllcers charged with their execution. That It is the will of the people that it should be paid and not perpetuated, ls clearly indi cated by the favor with which it rapid re duction during the past year has been re garded. i Nothing In our "history has created so much surprise, both at home and abroad, as the reduction of our national debt. Th. wonder excited by the rapidity with which it was created is greatly exceeded by the admiration ot the resolution of th tax payers themselves that it shall be speedily extinguished.- Theconvlotion is becoming fastened upon the popular mind that It is important for economy in the national expenses, for the maintenance of a true democracy in the administration ot the government, tor the cause of good morals and of p u bill! virtue that the policy of a steady annual reduction of the debt should be definitely and inexorably established. Nothing short of. this, and that economy in the national expenditures which will ren der it practicable, will reconcile the people to the burdens of taxation. A national debt must ever be a severe strain upon our re publican institutions, and ours should not be subject to it one day longer than is nec essary. y . 114 SPECIE PAYMENTS. The Secretary regrets, notwithstanding the large reduction of the national debt and the satisfactory condition, in other respects, of the national treasury, that little progress has been made since his last report towards specie payments. The views piesentcd by him in that report, although Indorsed in the House of Representatives by a nearly unanimous vote, were not sustained by cor responding legislation. Instead of being authorized to reduce the paper circulation of the country, according to his recommen dations, the amount of United States notes which he tfas permitted to retire was limit ed to $10,000,000 for the six months ending October 12, and to $4,000,000 per month thereafter. In the meantime, the reduction of these notes and of the notes of the Stato banks has been nearly balanced by the In crease ot the circulation Of the national banks, and specie commands about the samo premium it did when the last treasury re port was prepared. Having been thus pro vented from taking the lirst Important step toward a return to specie payments, the Secretary has mainly directed his attention to measures looking to an Increase of elll ciency In the collection of the revenues, to the conversion of interest-bearing notes into fl ve-t wen ty bonds, and to a reduction of the puMIc debt. " i Af ter a careful survey of thewhhle field, the Secretary is of the opinion that specie payments may be resumed, and ought to be resumed, as early ashe lirst day of July, 1808, while he indulges the hope that such will be the character of future legislation and such the condition of our productive industry, that this most desirable event may be brought about at a still earlier ; , -the THE POLICY OF A COIN RESERVE. The' Secretary has also deemed it to be his duty to use such means within his con trol as were, in his Judgment, best calculat ed to keep the business of the country u steady as possible, while conducted on the unceratin basis of an irredeemable curren cy. To accomplish this, he has thought It necessary to hold a handsome reserve of coin In the treasury. For doing so, he has been criticised by many very intelligent persons, some of whom have condemned the policy as involving a heavy loss to the country in the way of interest; others have objected to it as a failure on his part to avail himself of means within It is control for re ducing the price of coin, and thus approx imating specie payments; on the contrary, not a few have pronounced all sales of gold by the government unwUc, on the theory that if the coin received from customs, and not required for tho payment of interest, should be permitted to accumulate until it should reach about the same proportion to the outstanding United States notes that, in former days, the coin In the vaults of well-managed banking institutionssustaln ed to their immediate liabilities, specie pay ments might be resumed, without a reduc tion of the currency, and without regard to the condition of trade between the United States and other nations, j The Secretary has reearded a steady mar ket as of more importance to the people than the saving of a few millions of dol lars in the way of Interest ; and observation and experience have assured him that, in order to secure this steadiness in auy con siderable degree, while business Is con ducted on a paper basis, there must be pow er' in the treasury to prevent successful combinations to. bring about fluctuations for purely speculative purposes. He has permitted gold to accumulate when the use or the sale of it was not neces?arv for pay ing government obligations, or to prevent commercial panics or successful combina tions against the national credit; and he has sold whenever sales were necessary to sup ply the treasury with currency, to ward off financial crisis, or to save the paper circula tion of thocountry,as far as practicablo,from unnecessary and damaging depreciation. For making sales he alone is responsible. If, iu conducting them, any favoritism has been shown, or if the interests of any par ticular class have been especially regarded, it has been without his knowledge, aud in Violation of bis Instructions. ' CAUSES OF FINANCIAL DIFFICULTY. It may be hardly necessary for tho Sec retary to remark that his opinions have undergone no change In regard to the im portance of a restoration of a specie stand ard, or the means necessary to effect it. He trusts, however, that he has not been understood as entertaining the opinion that a reduction of the currency would ol itself necessarily bring about specie payments, although the chief and essential means to effect the desired result. He regards a re dundant legal-tender currency as the prime cause of our financial dilllcultiesv aud a curtailment thereof indispensable to an in crease of labor and a Teduotlon of prices, td'arf augmentation of exports, and a dim inution of imports, which alone will place the trade between the United States and other nations ou an equal aud satisfactory footing. , ,,; , . l I THE BALANCES OF TRADE. " Ever since trade commenced between the people of dillerent nations, gold and, silver have been the only reliable and recognized measure of value and medium of exchanges. Water does not more naturally seek a levol than does specie How from one nation to another for the payment of balances creat ed by an unequal exchange of commodities. It Is this necessity fof paying balances In coin which regulates the trade of nations. Is is this great commercial and financial law which makes the nation that , sells more than It buys, the creditor nation; and the nation that buys more than it sells, the debtor nation, and recognizes no medium but coin in the payment of balances, that determines the question of the ability of the United States to resume and maintain Specie payments; If the balance is In our favor, or if not la our favor, if the balance against us Is so small, that It can bo paid without , an exhausting drain . upon our precious metals, specie payments cart' at onco bo resumed. Such, unfortunately, Is not the fact. Notwithstanding our. heavy i ! inl.l ,'jl.l-filVffiJ exports during the. past year (thst ot ootpn Jiavtngbaon 050.072,820 pounds, or. nearly 1,600.006 bales'; a quantity greater tnnn orr entire crop of the present year), the United1 1 State are largely tklaotor to Europai m;i, JJetwecn the yrar J849wpP.gpldj,,wM first discovered in California, anil tlie first of July, 1800, the product of the gold 'and silver mines of the United 8tatc"was about' $1,100,000,000, nearly all of which; baa gone into the world's general, stock; and it is not probable that the amount of jrold and silver now in tne uuigpu rstaces is ;very much larger than It wa3 eighteen' year ago. ' ! ' - !'. l i 'ii-..I..M fcoKi.-iri'l -' Iluringthej flwal year, ending June 30; 1866, the United States imported : Foreign merchandise free or dutr, t38,8Ol,750; fnrelga uierobandim paving doty, .368.aO,U51. Total. . .... .atw.aiu 1 ne tout' exports ol domestic mercnannipo 1 dnri'igtue year, ourreoof valui f-i8,-i' jf-, ! 040,903, reduced toguldyalu.3:n,3V.',nH5 . Specie exported rW.o4J.S7 l 'fr- Total douiestio exports! valued In gold. i..415,065',45 Apparent balance of trade, valued in gold.. .,0t,M7 ' 1 But tueso figures, taken from the reports of tlie custom houses, do not present the wuuiu irutn, on account ot s) meiimuc iiif der-valuatioii of foreign merchandise im ported into the United States and smug gling.. To make up for under-valuations and smuggling, and for cost of transporta tion paid to foreign shipowners, twenty per cent, at least should be added to the imports, which would make the balance for the pRst year against the United States near $100,000,000. It is evident that the - balances have been largely against ' the United States for some years past, whatever' may have been' the custom-house returns. On no other ground can the fact be ac counted for, that a very large amount of American' bonds is now held In Europe which are estimated1 as follows: United States bonds, $350,000,000; State and munic ipal bonds, $150,000,000; railroad and other stocks and bonds, $100,000,000. 'Total, $000,000,000. . '. It is evident, from these figures, that the balances are against us, and. chiefly by the exportation or our government bonds, are being temporarily and improvidently ar ranged; temporarily, because a large por- tiou ot these bonds have been bought on speculation, and will be likely to be re turned whenever financial troubles in tho countries in which they are hcd shall make it necessary for the holder's t6 realize upon them, or whenever satisfactory protlts can be made by returning them, which will be when they nearly approach their par value in coin; iinprovldently, because they are being purchased at very low prices,' and because their exportation stimulates im- Sorts, and thus cripples home-industry, othing is more certain than the fuct that there can be no permanent resumption of specie payments in tho United States until balance between them and other na tions shall be made easy by an exportation of commodities, including the products' of the mines, equal at least to our importa tions, and until provision shall be made for returning: bonds, or for 'preventing: their return at unpropitious times. This state of things, It Is conceived, cannot be effected without a change In our linancial policy. 7 EVILS OF PAPER MONEY. I An irredeemable, and consequently de preciated currency, drives out of circula tion the currency superior to Itself; and If made by law a legal tender, while Its real value is not thereby enhanced, it becomes a false and demoralizing standard, under the influences of which prices-advance in a ratio disproportioued even to Its actual de preciation. ' Very different from this1 is that gradual, healthy, and general advance of prices which is the effect of the iucreaso of tho precious, metals. The coin which is obtained in the gold and. silver producing districts, although It first affects prices within such districts, following tha Course of trade, and in obedience to its laws, soon finds its way to other countries, and be comes a part of tlie common Stock of the nations; which, 'increasing in amount by the regular product ot tho mines, and in activity by the growing demands of com merce, advances the price of labor and commodities throughout the commercial world. ' J-" " ' : But when a paper enrrenoy Ig an incon vertible currency, and especially when be ing so it is made by the sovereign p t'wer a legal tender, it becomes pi-olirlcof mischief. Then specie becomes demonetized, and trade is uncertain in its results, because the basis U lluctuating; then prices advance as the volume of currency increases, and re-' quire, as they Advance, further additions to the circulating medium ; then speculation becomes rife and the few aro enriched at the expense of the many ; '! then industry llnnllnA. anil a v h ma ttn i. ,. n a I ..... ., then, with a diminution of, products, and consequently ol exports, there is an in-; crease of imports, and higher tariffs are re- quired on account of the general expansion, to whioh they, in their turn, give new stim ulus and support, wh.ilo the protectiou in-, tended to be given by them to home indus try Is in a great measure rendered inopera tive by tho expansion. This, notwithstand ing our large revenues and the prospirity of many branches of industry, is substan tially the' cdndltion of the United States, and the important question arises,' i what REMEDIES SUGGESTED. i With entire deference to Congress, the Secretary , suggests that, they are to, be found . . '. . ' i First. In compelling tlie nationat banks to redeem their notes at the Atlantic cltiest, or, what would be better, at a siugle city.; -I Second. In a curtailment of the currency to tlie amount required by legitimate aud healthful trade. ' . Third. In a careful revision of the tariff, for the purpose of harmonizing it with, our internal taxes removing, the oppressive burdens now imposed upon certain branch es of industry, and relieving altogether, or greatly reliev ing, raw materials from taxes, in order that the product of labor: may be enhanced aud production and exportation, lucreased. . , , Fourth.' In the issue of bonds, payable In hot over twenty years, and bearing Interest nt the rate of not over live per cent., payable in England or Germany, to an amount suf ficient to absorb the six per cent, bonds now bold in Europe, and to meet the demand 'thero for actual aud permanent investment t 'and ... 1 Fifth.1 In the rehabilita'tion of the South ern State, :) .! ,X '.' O :r v- REDEMPTION OF NATIONAL BANK NOTES. The utility of com)elling national banks to redeem their notes at commercial cental- ss well. as at their own conn tersjs apparent. The object of Congress; In the establish ment of the national banking system, was to f u rnish the people with a sol ven t c ii rrency of,,uulform value, throughout the Uuitod :States, secured by a deposit of bonds with tho treasurer. al.Wasbmgtonsbut, as tho .banks are scattered throughout thecoun try, ,and many of them are In places dilhViilt. of access, redemption of their notes at theiH respective- -ooun ccr' is not all that Is re quired to make them throughout the Uni ted States a par circulation. ( , j . f.. . It may be urged that, to compel remote .banks thus to redeem,- would b6' a bsrd jshtp; but as very few. woll-managod bank ing institutions in me united States.fail to. keep accounts aud balances, irt gurne of the Atlantic cities, this hardship wbiilj be found, n bon trial," to be Imaginary, rather than real,,, Hut if it Should bo a hardship, It would be a neotsoarywue',1 aftd 'the hiter- esisbf ttiff nahksr.iu otihH'to the rnlrVettal of the people. BeWes wIr.haitCwA'i;" rlijinpllon, there wirrbe-praHically none at all, at least nntif'spiij'fwitrnehlil are re sumed? and wheathevearetio rtodompCiotui: tuirreta always: ftionttnt nation junu iucu,uiiiu.c naent anil reeuliir reti needed to koep'trir'busl irtHiiy 'coiidltton,. and that invariably! prove j! kslTuUueou to the stock;, holders than to tlte pyblje,, unless the bauks stall be compelled .to. redeem Ih'U'riited 6 ates notes, mivuytpl'Trh'etu , wjll neither land their, influence .fn' favor of a return t9 specie pay luents, n6r be prepftrdd for them wlrn, 'without' the4r; ftgncy, specie' pay incut shall be brought about..' If;, the tie-1 termination, of .tho question was left to tlie Heereturv, all the h tnWs woiild be required 1 to rcueeiii iq ew I orn, inc ncKnowieuzeu commercial metropolis of tlie Union What H said' Upon this subject, by .tie.;c(ing 'Comptroller of the Currency is fully iu dbrsed. ... . 3 ' nessor trrff'uarrks'lfn 'I .teuMe'VftiMir'artu; . a. u . .i. ' r a. i 1 j REDEMPTION OF NATIONAL BANK NOTES. CURTAILMENT OF THE CURRENCY. The views "of the Secretary1 'nporl ' the question of a reduction of the carroncy Inive been so frequently expressed that it Is only, necessary now to consider wliether the curtailment should be of the' United States notes or of the1 notes' of the -national banks. On this subject hi opinions: have undergone no change since he. communi cated them in bis reports as Controller of the Currency. Banks of Issue, organized finder State laws, have been in existence ever 'Since the formation of.'the' govern ment. : Mate banks were in full operation, and not less than four hundred millions of dollars were invested in them as capital. In some StateM by judicious legislation and careful management, they had afforded a local circulation satisfactory 'and sdfe. Iu other State.s,'where no reliable security, or liisulliclent security, hud' been required foe (he protection of the public, and their management had been coulldcd. to Incom petent or dUhonest hands, there have been numerous failures, -and heavy losses had been sustained by the holders ofi .their notes. . .... t.i,.,,,. ,. . j .... . , Tho national banktngsystem wainOtpre pared by its author, nor adopted by Con-' gress, to dwtroy tho Wtate banks, nor to dl-. vert capital from banking,but rather to com pel all banking rnstitatiousiasuiug notes as money to secure theiu, beyond any ooncciv able fiontingeucy, by deposits '.wftll tlio Treasurer ot the United States; thus, with out the agency of a national bank:, prdvid Ing a national ourrency which would save the goverument and. people from, lo.-see, of which there was constant danger, from a local and unsecured circulation; 'The' 'na tional banking system was interning, while not; invading the rightBof the Statesl:iior .damaging private iuterests, to furnish the people with a permanent paper circulation, i Tno United States notes were lntehded to nieet a temporary emergency, and to be re tired when the emergency had passed.; The present Secretary was, uot the advocate of the natiouai bankiug system, and claims only the credit' of having used his beet ef forts, as couiptrvitiery w put it into success ful operation.. But he has no hesitation in in'ouounciug it a vast improvement upon tlie systems which it superseaed, and one a dmiritbly adapted to our peculiar form of government. I here are substantial objec tions to all banks of issue, and If none ex fated In the United States, it might be very quetllonablc it any should bo iutroduoed;; but having Ukou the place, of tuo folate banks, and furnishinr as they do a circula tion as free from objection as any that is' Jiltely to be provlded,"ttie hocretary Is of (lie opinion that- the: national banks ihould, be 6u-.Uiiicd, and that the paper circulation 01 tho couutry should be reduced,' not by compelling them to retire therr notes; but by the withdrawal of the Uuited States Dotes. Anxious as he is to ligliteu the pub lie bui'deuti and roxluce.the pulilic debt, he does not hesitate to advise tliat'thesri notes be withdrawn from circtilatlon, and that tlie furnishing of what paper currency may be required bo left to corporations, under ex, isuug laws,. and such ftiuunduients of these laws as experience may dictate for the bet ter protection and advancement of the pub lio interest. How rapidly they may bo re-' tired must depeud upou the effect -which, contraction muy have upon business and in dustry, and cau be better determined' as the work prognoses. ''The" reduction' could' firobably be increasud: 1'rotn four millions ter month, as contemplated by the act of April 12Ui.. 1SUG, to six millions, per month for tlie present llical year, and to ten mil lions per' mbnth thereafter, 'without pre, venting a steady eon version of the interestr beariug notes luto bonds, or injuriously af ieutiiiir legitimate business. No determin ate scale ot reduction 'would, however, in the prcscht condition dtour affaiTs;"be ad yiBable. The policy of contracting the cir culation pi govemment. iiotes. should be definitely 'and unchangeably established, tnd theprocew should go on just as rapidly s possiole without produciirg a financial crlslsbr' SeHousiy" tmibarrassf fig "those brancheSo inddstry-ahd trade1 nnon which our revenues are aepetiaonu "tiiero'TS a great) adaptability in the i business .ot the United Stiites.anU it will easily, aecoiunw date itself to any policy which thogpvern- uient may adopt, iiiatine policy indicated IS the true and safe one, the Secretary" 14 thoroughly convinced. It ib shall hot be speedily adopted and rigidly but Judicious ly, eulorced, severe uuauxiai troubles are in. Biurc iui us. . . , It NATIONAL BANKS FOR THE SOUTH. The Secretary c6ruially'a'pp'roves what Is said by the acting Comptroller' of the cur renoy In hht report in regard to the imports ance ot furnishing the people ot the South, with the bankmote circulation which their business may require, and agrees with him tn the Opinion Which he expresses of the leneliclal rosults-politlcal, .financial and Booial to be effected by tho organization oi national banks in tlie Southern States, but he cannot feepmmenu an Increase 'of the bank-note' cirrjiilatioh1 bf the Coutlt'ry1 be' yond three hnndreot millions of dioUarSyaad hopes that: the irecesBities .of tho6e State, may po aupplltid ratlierby a reduutiou of the aniouut awarded to other States than by anlucreaseof'the volume of currency;' ' takIff REVISION -:ahd freedom Of' trade. On this slxtechtlvof July last, Mr1. David A; Wells was. appointed , special oomniisf.i sioniir of the Jreytuu,uliaua ustrucUjd, to, L'iva his chief attention to thu tarill'. wirli ,the view of ascertaining what modifications' are required w ad)us It to th:system Of iHlernal taxes, -stiuiuuito industry,,, and. mako labor pior,e- productive, I'he ability displayed by Mr. Wells in the performance of his duties as one or thtf cOnimissioneM lorthie,' revision of the ihtornal revenue laws, apd tho heartioesa wiUiiWbichi.be U pxo.sccuting his Mivestigauns, otive.the best assurance "that ho will' perlvrin'the Svork in a rhaiiner credible to Himself, and atuifautoTyr to i (Jangress and- Jlw movte.'A The Secretary addressed, tp biiu o Die fourni Xepntn,. naj oi jOepteniuer,, laiKi, , a lettor, ifroni which''tho following is exttaotedi' ' . -"lh'vlew-'or the fact that the-revisions the tar ill' is certain to ngare : the attention. lof. Congress at te next session, ,1 consider iit especially desirable that the" Treasury. lDepartmcut shQUldJ)(fcPrepared to famish1 as luucu inloriitiitiou.perUnent to the sub ject as,caP iHobUiuedand collected within tlie liiuit'.'d tupo avauuoie lor tn, necessary ihVAKilir'ittliiiitt. Yoti atci therefore; herebV i-e(ittsW44o gvthe8iibjettt of the revise! slon ot the tanu especial atteutiohj uao to ' Matft rffl)ort a D'H. TI lit UC.It BUt'tlLUll H'l ! i1 kr 1117 ttistom Vlirtles,uria wHich will Mi" deV th adiiilntetrMioortits'brltrihW thelt recollect! n ir the fact that th ax istl ni mrttfad tMs. pro ad most eflective 1 u ithis dii ruction -.if ito endeavor, llji-fsL, tp geoqre tor Hie govern-:, , a icveuiiu ciiiJiueiiHurHi,ti witu Jin im- ceskttleS 'and;f',seeonal,'Wipr0lOse,'r(c modifications of the tariff laws .o'jarorfj fcfrce as will bwtwi1 1 swIJufD and equalize tha duties u pot i torolgBi trrtporm. waU ttn iu- .ternal taxes uoon hom mod net ions. J IThe nneutinn(,PHiHturllV a tn h rnailitl ' ered Ju cQijncctlon wiha permanent sys- .tern of Internal ' f ales' ana a de'nrct fatcu. , ?but, iti4 ItofVedJ RteH)Orary! ifgtKteiaJe: 'cnnxMieyn,,U obybua tbii); , m)w finrw ftil'S upon Imports wbitih nnglit liavebe.cn istllcient, judicious,' and1 UeneflcW Vhcti "I thererWetV n Interval ederal';,t5wai mdf bptliu-sa was conducted upon a specie ,b1s may be iiisulllclent, Injudicious and' rlousnow. A large revenue Wat tfrtberVc' indispensable for the payment of sthp rdii .iiary expppscsvf.the, government.,the !!t, tertst upon.the public debt, and Jfpr a graij ual aud regular reduction of the-ipyiirc?par.w' .Free- trade,: although.iii amfrdjWitli -titf .principles of the itovejpincut-ind the ui-; 'stinctsot the people, cannot be .'adopted as :a po icy as long as the 'public debtixistiln anything like lis present inagiiitutK iliai .long-hope(l,-fpr period when .there shall ,bu ,no legal obstructlons'to a free exchahge.or' commodities, between the United BtatesneV' otlier 'countrUis Is still ofJir iu, ,tb,iT trp The present quesfiQU is how to procure, an , adequate revenup least opprfs'sive'kiiif wot " 'coriflieting wfth1 Out adverse lnterAW. 'Xf' reAveim svataru mnner i aim filH-,ooHrm WtL tA enective." Mr, Wlls.waa. igstructrd in iai kc vci tain smiiu iiri iiiaiitrnii rcicimra THE UNITED STATES MARITIME AND SHIP BUILDING. V ' No single interteft-irr. the Uiated,,8titrfjair fostered altlioutrh it ruav be bv, lestWhUiwti,., ,ican long prosper at the , expense .of .other great Interests. Nor can any important in ' terest bd crushed; by unwise online qnat "law,iwitllout other iiieri'stn busing therpbyy prejudiced, . For. illuVl'atio'r' -fw p'oj)e of , the United States are. 'naturally a corhincrv ' clal and maritime people foird tfl tUleit"I tii rfc Bold, entqrprb-lng, .persisfcot. Now tbodisagcceable fact must be admitted tljiC . With u'neqgaled facilities f0r,'o'btafnlng'tli" ! materials, arid with acknowH'elgdklll l-f .slilp-buildlnp wlthttioti.aniUuf. uiih a.ofi sea'Ooast,'lndentcd..w:ith,the lines harbors in tha world with' surjfi'ns' promietii fhiitf ' require in thrilr'bkportatWn a Wl-gfc aM t creasing tonnagee-wecau neither profitably,,; . build ships nor successfully compute witli English ships in the transportation' of 6uf ' ojwn protlnrtlriils? 'rWetity years ngo.it waB ajitImpatiiithiueie-ii&-.tiUe' Uwtf-'4'ateSj i ould be thts.ilrfst jjiarume powor iu tho World. Contrary to our anticipaaiuhs, our-1' , fbreign commefec has dtriiied'nftiiy AnyH peVcentiiwlthin the last six yarsf- ., . ; It: isXt'ue that -a. h'rgc prouprtion of tbta, diuiip.ution qf shipping and klrlp-buildlrig1 was tliii eil'ett of the wat.J,;Tlie prlces'.of labor and materials are so high now.tuat ' sliip-buildwgcaiiuot benntdc Virolluble hi ' Uie Uuited, Staoes, an'd'niii'njrjbi 'ofirHliA yard 'are being' practidttliy'rnhleTred.ifl)v tlie1 British rrovlnaustiJ ia. only i-jt.. ewn yestrS sine, tbat:,AmexU'.aii,'- sh;ps yWes.a. soughtatter on account ot their superiority aircheapne.s; hfl large' 'liu'inbriM of triw stU Were built, tor. JUatue and ,Uir titatcs, u on: foreign .nrcotiBt, or sd.tq Joreiners, . While, at the suiue time', our owii!irhercan-'a tjle'uiarino was beiitgpldly lncteasedv' Now many of out shipj-yards are Mbaiulonj. eik and. Mt .otJiers yer.Jii(Ua, activity, pre-, tails.. ' ' , i . '" i It Is true therri na rtcently beerV korfio-' Increase in our foreign tonnagdrbuti goottol pat ,ot this increase, is arpareut oqiy, sua is jhe result of. the hew t ulc of Sdiiitasorc ment. It is an impbrtsnt truth that es-M sclscan be built very muuli cheaper in ittw jl BritisH TrovlnceS ha iu, MaineT..Nayt furttier, that timber can be taken fiom Vir giuia 'ta the Provlrfces) find 'from : tries, Provinces to England, a nd Cher made dtitOoj Ships which' can be sold at a profit, whiles tUe same' kind ot. vessels cati' only boT)ullti , In New England ttt alosiby the most skllM Inland economical builders. But the-evdbd doe not atop hers. , Lt tha only loss was that which the country sustains by the dis continuance of shipbuilding," tTieife YoultF be less'canse of complaint..' tt- Ujnwelivw CstablishodgenBrai fact; that tlie people, who build ships navigate them, and tluit.a na tion which ceases to build ships ceases, of taiiSeqfteodcMrvbe a c6mmereiHl4indlnJtrtl timiiation,.d uiUo-a,, tWretor .the laupc wliiuli preTuntthe building -of ships In the United States shall ceas'e, the foreign rirTyT liiji trade,' evert' ot" our eWivJproeiuurtoiJetf must be yielded to other nations. Ta4h)s humiliation and lpss the neoplcpf the Uni ted States, ought toot to btf'Bubjctefu'-4'if other brarfehes bf"' Industry aw wprosporpe it agriculture is to be profitable, and uiatVni ufacturesare to be extended, the cpoimerco. Of the country must bo restaredsustaiiied and increased.' The United State's 'will dot be'' llrat'ctass pawer- ftraotigthe TjatioflS, ho .Will her uther industrial. in tcreats fon-.n ti.ue to prpsper as they ou?:ht, If ber com merce shall be permitted W languish:'- 'v NATIONAL INTERESTS SUFFERING. The same causes redundant 'currency irid high' tAxos that prevent I shipubuilu ng, tend 4o prevant tho btiildingiof; iioiai( tad, even of mauufaotoru'S, lobigh aro rices , of every description that., men hwi- ate to uuau uwuuuis s iusi rs inry are a eauired, and thus rent's are So4dvraneed ksa loU'OPDrc8ifVf tessocf, apo-thtt bcaji.hr ferowth of towns and cities is retarded.., Sa. 11. in " to' 'iiiaTi'dfactb'rinit.7 rlrtnl! tvhlcH'were built beforetbs wur oaa beruri l profitably but ao-xpeaaive are llabvs ru4o matcrlals.thac new vA cau uot be..erectcd and put into operation' with any prospect orntir returns upou- ne tiivescmenavunieis upon the expectation foat laxetAvUliremaiA) as thy are, and prtees bp ustalued, ,if , thcr. . are not advancuclv Ihe saine. causes are i'u- , jurlously atfiictlng" agriculture 'arid'othei interests which it is not necessary to alr ticulorzu, Iftfseyerywlipte: obscryed that existing high prices are. not oiily jop'prcse Ing the masses of trie peoplebur Hre seri OUsly ctiecttln' tno'TlnvulopmentJli grow (hi and prosper rty. fpf .thei aou n try i j loided,ir4ajt tlio .lossesUlcl the, .country, tits sustained bt able-bodied 'nic'd by Jt)itr Warfsbni iaiisb'of exlstliig tiigl? 'JVrHrJ'l but mainly ihty are the result of &'Mtfula1 tlant currency and blghiax)Sv-j rr fj.,,t Toxaiso .tlie large reyequo which Is now reqltlrW; by systems'hr inttriiid'KrtilVitei1 JiTU Uutle'.whlohyworRbittrv ii.ihaVniapyf tfeualpettUeii ,rept:es.!jua.iirttry; i()f cUelt feutjorprirAUd, which shall, be-so devisM hs to make. taxation, bear mi)sttuavllyl kriSoit'thbse' vrlid ai,e'1'4ii6str'beii'erTtStct. by kaiwandjby'tiie-dobfc'Wfltoh endtr.tTa-t ilow iwcessary, "f euKrea : greatttiructlcali :uowledgo Am wIsb statosmaoshlptsiij bnu IMPORTANT RECOMMENDATIONS. The Secretary suggests that the'oUowJ1 nK,general:printiple9,r8otng,t)fWhlch hava been acteduppn by Congress, and the oor, rectiie.spf allot which has been! proved l by other nations, "may be safely adopted a' it gvrtde to the legiHlatloiithat is1 now11 rew rjrttlred 1 '''' i 1 ..n ' lst;' That tie 'fewest' u'uutWf of article d I'biiE.Wtcnt' 'with' the; ahiouhf6f 'tfyerriit; tV borai.Hed sliodld be'sillijcl'tii'io- l.in-i'iial'' ' ' . t l... i. ,, , ji , i.iuix(,('jft'-ru-;:j,j u..,;.;