Daily national era. [volume], May 24, 1854, Image 2

About Daily national era. [volume] (Washington, D.C.) 1854-1854

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|)nblic fl otumtut.
HLFOKI Of I'M 10 SECRETARY OF
THE TKEASUK Y.
Trkasi ry Department, Dec. 3, 1655.
Sib: In ol>edieitcc to the acl sumplemeniary to
the act entitled " An acl to establish the Treasury
Department," approved May 10, 1MX), the follow
ing report ia submitted :
The balance in ihe treasury on the
1*1 of July, 1651, was $20,137 967 50
The neiual receipts of the first quarter of the
fiscal year ending the'30th of June, 1855, viz : the
quarter ending September 30. Ib54, were :
From customs $l8,6?'fe,798 45
From lunds 2,731,654 12
Miscellaneous 149,850 28
21,521,302 85
The estimated receipts for the other three
quarters were :
From custom- $3(3,000,000 00
From landp 6,000,000 00
Mi>cclliineous 500.000 00
42,500,000 00
This, together with the actual receipts for the
first quarter and the balance in the treasury on
thel>tol Tilly. IS- -4 made the a^gregata sum
esiic Hted of SM 159.370 33 for the service of the
tiscul year ending the 30th June, I85S.
T i.e actual expenditure tor the first quarter ol
aaid ye ir was $10.1' 'J 'I" ft-, ns follow*. to wil:
Civil, iiiisiellxnt'OiiA, und foreign
ietei course $6,241,749 31
Interior 2.175,737 13
War 3.367,039 92
Navy Department 2 506,791 09
Redemption of public debt and
premium 1,876,013 17
The estimated expenditures for the remaining
three quarters of the yeur were as follows:
Civil list, foreign intercourse, and
Miscellaneous SIT) 066.931 13
L'eficieney in the Post Office De
partment 2.719.464 00
Interior 3,133,655 23
War 13.626 350 90
Navy 11.258 095 71
Interest on the public debt 2,370,093 60
48.176,590 59
| |Making the actual expenses for the fir?t quarter
and the estimated expense* for the other three
quarters 564,345,921 21; and leaving an estimated
519 762 (MG h29trenSUry ?" thC lBt ?r July' 195S' ?f
, actual receipts into the treasury for the
fiscal yt.ar ending 39th June, 1955, were, for the
1st quarter.?From customs $18,639,799 4 5
From lands 2,731.654 12
Miscellaneous 149.S50 25
21,521.302 85
2d quarter.?From custom* 510,317,364 41
From lands 3.873,939 SO
Miscellaneous 87.558 12
14.278.862 33
3d quarter.?Fiorn customs $12,646,008 04
From lands 1,763^644 41
Miscellaneous 157 210 19
14.566.922 64
4lh quarter.?From customs. $11,422,503 31
From lands 3,127,810 74
Miscellaneous. 86,468 68
14,636.842 73
Making 565.003.930 55
Balance in the treasury 1st July,
,&r>> 20,137,967 50
Total sum for the service of the
ti*? al yenr ending July 1. 1855.. 85,141.898 05
The receipts from customs were.. $53 025.794 21
The receipts from lands were .... 11 497 019 07
Misce l.oeous 4^087 27
65.003 930 55
The actual expenditures of said year were:
1st quarter *$16,160,330 69
Quarter 17.477,814 74
3d quarter 15,572,349 65
4th<>"ar,er 16,990,427 03
_66.209.922 04
The expenditures were as follaws :
Civil, miscellaneous, and foreign
intercourse $24,183,487 43
*?rtenor 4.126.739 00
14.773 826 36
Navy....... 13,281.341 01
Redemption of public debt, interest
and premium 9,844,528 24
65.209.922 04
Balance in the treasury 1st July. 1855, las appear*
in detail, per Maiement No. J... $18,931,976 01
It will l>e seen, by reference to statement No 1
that the sum of ?9.S44.52s 24 wa? expended dur'
mg the year in payment of interest, premium, and
redemption of the public deWt. making the exoenu
itures upon other objects $56,365,393 80
In my last report, the estimated receipt, for the
fiscal year ending the 30th of June, 1856, were as
follow*:
From customs $56,000,000 00
trom ands 6.000,000 00
000.000 00
... . ... 62,500,000 00
Add estimated balance in the treas
ury July 1, 1855 19.762,046 29
Total estimates for the service of
the fiscal year 1956 82.262.046 29
The est.mated expenditures f-r the same were
as follows :
Balance of former appropriations to be expended
this year.... .... $11,212,905 20
Permanent nnd ndfnnite ippropri*
at ion. to be expended 7.934,411 70
Appropriations asked for 41.722.516 47
60,669,833 37
Leaving an estimatee balance jn the treasury
on the 1st of July. 1856. of $21,392,312 92
The actual receipts ibto the treasury for the 1st
quarter of saidI vear, viz: the quarter ending 30th
September, 18.).>. have been as follows:
From Customs 17.085.238 28
trom lands 2.355.725 87
Miscellaneous 333.495 98
. 19,774,460 13
The estimated receipts for the remaining three
quarters are now set down as follows:
From customs $42,000,000 00
5,644.274 13
Miscellaneous 500.000 00
^ . ? 48,144,274 13
?Sftk!,reCe'pU for lh? fir?? quarter,
and the estimated receipts for
the remaining three quarters.. 1^7 Qi(i ru oa
Add balance in the treasury 1st of "
July, 1855 18,931,976 01
Making the estimated aggregate of 86,859 7?0 27
for the service of said year. '
The actual expenditures for the first qu.rw of
said vear-that the quarter ending the 30,h of
September, 195.>?have been as folkms :
< ivil, foreign intercourse, and mis
cellsneous. *5.117,860 25
Interior, pensions, and Indians.... J "709 04') 19
N.Vy* Jig'1 11 *
Redemption of public"debt,"inte- ^
rest and premium 252 209 71
For the actual receipt..nd expend!n,rel'offirM
to"'
Civil, miscellaneous, and foreign
intercourse....; SIS,651,974 95
Deficiency in Post Office Depart
. *, 2,669.369 00
interior Department, (pension, and
Indiaas) 3.532.033 92
War Department 8,773.524 31
isavy Department 10.956,030 73
Interest or, public debt 2,299,900 00
Kedemption of public debt 7,750,000 00
54,632,730 81 |
Making the aotunl and e-timated
expenditures 71226 846 91
and leaving an estimated balance
in the treasury on I he 1st of July,
l8r)6, of $15,623,863 36
The estimated receipts luto ihe treasury for the
fiscal vemr ending the 30th of June, 1657, are as
liillows:
From customs $64,0')0,000 00
From land* 7,000.000 00
Miscellaneous 5011,001) 00
71,500,000 00
To which add the estimated bal
ance in the treasury ou the 1st of
July, 1856 15,023,663 36
Making the estimated sum for the
fiscal year euding June 30, 1857 . 87.123.S63 36
The estimated expenditures for said year are as
follows :
Balance of former appropriation*
lobe expended thisyear $16,696,689 99
Permanent and indefinite appro
priations to be expended this year. 7,030,910 14
Appropriations asked for 45,11-1.705 45
09,451,365 58
Less $12,000,000, which it is esti
mated will not be expended.... 12,000,000 00
57,451.365 58
Leaving an estimated balance in
the treasury on the 1st of July
1357, of. 29,672,497 78
The public debt on the 4th of March, 1853,
amounted to the sum of $69,129,937 27, which,
under the authority of the appropriation net of the
.Jd March, lb53, has been reduced, up to and
including the 17th of November, 1855. to $39 909,
731 05, a* per statement No. 3, accompanying this
report. The sums expended in paynient ol princi
pal, premium, and interest, in making this reduc
tion. amounted to $30,100,512 62.
In addition to the public <lebt. a* above staled,
there is due, under treaties with various Indian
tribes, payable upon time, the ?u m of $19,253,522,
13, a* per statement No. 4, accompanying this
report. Besides which, the United States hold
stocks in trust for various Indian tribes to the
amount of $3,822,700 57. nud $726,184 85 invested
tortlie Smithsonian Institution, as per statement
No. 5. The United States hold the principal of
the Smithsonian fund, amounting to $515,109,
under the act ot the 18th of August, 1840. and are
bound to pay the interest annually, for which ire
stocks, staled in the table, are held as uu indem
nity. In addition, there was hi the treasury on
the 1st of July, 1855, the sum of 50&3.373 66, bal
ances of various trust funds, as per *tat?meiit
No 6.
The estimated leceipts for the fiscal year ending
30th Ol June, 1^55. based upon the actual receipts
ot the first quarter, together with the actual balance
inline treasury ou the 1st of July, 1854, were
$81.159270 35, and the actual receip s were
$!s 5.337,898 05. and in excess of the estimated
receipt* $1,178,627 70, and the estimated expen
ditures lor ihe same year were 561.315.921 21,
and the actual expenditures were $06,209,922 04;
making an excess of expenditures, over the
estimate, of $1,864,000 S3; but nothing was esti
mated for premiums, and payment of ihe public
debt, for the la?t three quarters of the year, nor
was anything estimated for appropriations by
private acts of Congress.
The actual receips for suid year were $1,614,
001 24 from customs less than estimated, and
$2,765,394 95 more from lands than estimated,
and $10tJ,703 01 less than estimated from miscel
laneous sources. The causes which it was then
apprehended would afTect the receipts from cus
toms for the remaining three quarters of the fiscal
year had a more stringent operation than was
calculated, whilst the proceeds of the sales of the
public lands exceeded the estimate.
The actual receipts into the treasury, from
customs, for the first quarter of the fiscal year, to
end the 30th of June, 1S56, have-been $17,0^5,
238 58, and $l.5o4,500 17 less than the actual re
ceipts of the corresponding quarter of the pre
ceding year, arising from the same causes that
affected the receipts from customs for the three
quarters of the preceding year; and the receipts
from publie lands have been diminished by the
u*e of land warrants under the the bounty land
bill of the last session of Congress.
It will be seen that the receipts from customs
for the remaining three quarters of the fiscal year
1856 have been advanced from the estimated re
ceipts submitted in my last report. This has been
done because the abundant agricultural produc
tions in all sections of our country will justify
larger exportation*, and because of the demand
for provisions in Europe, caused by the war and
limited crops, but with the expectation of less
demand for cotton and diminished prices, and also
the return of American stocks under continued
stringency in the money markets of Europe,
growing out of the demand of mohey for the war,
and for breadstuff's, and the withdrawal of money
from circulation, under an apprehended scarcity,
and its effects upon the money market in the
United Slates. The advance may not be realized,
but it is believed the estimate is a fair one; and.
at all events, the receipts from customs and lands
will meet the estimated expenditures as far as
they will be called for, and allow a considerable
sum for the redemption of the public debt, should
the holders be willing to part with it.
The table sxhibiting the amount of gold, silver,
and bank notes in circulation at different periods
gives the amount of gold and silver in circula
tion for the fiscal year 1855 at over $250,000,000,
and the bank notes in circulation at $187,000,000;
making a total circulation of $437,000,000, and
showing that the bank note circulation was re
duced from that of the preceding vear al?out
$17,000,000, but which we may consider it has
more than recovered. The table of coinage for
the same year exhibits gold and silver bullion,
received at the mint and branches, to the amount
ol $70,017,007 82, and the table of exports ex
hibits the expor of gold and bullion to the amount
of $56 247.343; showing an excess of receipts
over the exports of $13,769,064 82. The table of
exports for the tame fiscal year, in additiou ?o the
export of gold, exhibits $30,427,187 ot manufac
tures exported, and $20,156,368 of foreig-i geods
exported, exclusive of specie, and $162,323,948 of
all other articles; making the whole exports
$2io.1jG.84C, against $261,468,520 imported, show
ing the excess of exports $13,666,326 over the
imports. There is no return or estimate of the
gold imported by emigrants, and no return or
estimate for the freights of eur vessels that have
contributed to our imports.
The table of tonnage for the same year ex
hibits our tonnage at 5.212,001 10-95, an excess
over that of the preceding year of 410.000 tons ;
but it is proper to remsrk. that the tonnage meas
urement of American vessels, under the present
act of Congress, makes the measured tonnage,
less than the actual tonnage, whilst the unre
ported lost vessels may more than counterbalance
the difference.
The table upon the currency justifies the belief
that there is not less than i50 millions of gold
and silver in the country, whilst there is no reason
to doubt the continued yield of the mines of Cali
forma, and that the demand for our exports will
enable us lo exchange as largely for the produc
lions of other countries as in former years, with
out parting with our gold and silver in larger
quantities than we produce it.
The demand for our agricultural producta for
export, and the consequent good pricea. will, to
some extent, stimulate our importing merchants
to bring in foreign goods, because of our in
creased ability to purchase them abroad and con
sume them at home.
It is believed the check to importations and
consump ion from short crops last year will, to
some extent, continue through this year, and,
with other causes, prevent extravagant importa
tions on American account, because the war de
mand and short crops in Europe will lessen Euro
pean consumption of manufactured goods, and
the makers will seek the American market for
their surplus; consequently, a large supply of
foreign goods on foreign account may be expected
in the market, interfering with the profits of Ihe
American im|>orter. Moreover, if the war shall
continue, considerable stringency in the money
msrket of Europe may be apprehended, derang
ing more or less the money market in the United
States, according to the intensity there. This ap
prehended money crisis in Europe will operate
to repre?* importations of European goods on
American account, and new enterprises at home,
whilst the continued tide of emigration to the
States and new Territories of the West will in
duce large investments in the public domain,
thereby absorbing the land warrants, and creating
a considerable dem-tnd for money. The aspect
presents a prosperous year for Ihe United States
and its revenue, yet calls for prudence and cau
tion in expenditures.
Herewith is submitted statement No. 7, (taken
from ihe most reliable authorities, with years and
amounts blank where no such authority could be
found.) of the gold and silver coin and bank notea
in circulation in the United Slates from 1790 to
showing the increase of banks, bank capital,
ami bank-note circulation, and containing explan*
story remarks upon the subject. Also, statement
exhibiting the coinage at the United Stales
,,r?nuhes since their establi?hment to
Ihe JOth June, 1%55. ^Iso. statement No. 9, of
the receipts of g(,ld and silver at the mint and
branches from the 30th June. 18*. lo 30th June,
I I8.JO, and im|>orts and exports of the precious
metals for the same lime Also, statement No.
10, exhibiting our annual imports and exports
from the 31st of December, 1789, lo the 30th
June, 1355 Also, statement No. 11, exhibiting
the tonnage of Ihe United Slates from' the 3lsi of
L'ei-eiubvr i li'J, lo lUc UltiL ul J unt, ls05. Also
statement No. 13, exhibiting the receipt* into the
United States treasury from custom*. lands, loan.-,
auii otherwise. from the 4tti d iy of Mttrch. 17s9,
lathe 30th ul June, 1650. Also, ?lai?iuciu .No
13. exhibiting the prices of flour in the cities of
Uostou, New York. Philadelphia. Lialiiiuoie, New
Orleans, and St. Louis, from the most reliable
sources, for thejears Mated in the table. Also,
statements from No. 14 to 18, inclusive, exhibit
ing the |iopul*liou of the several States and Ter
ritories, with certain statistical information takeu
from the censuses of 1790, lbOO, 1610, 1820, 1630,
1840, 1850. Also, table No. 10, recapitulating the
previous statements, and giving the population of
the Untied Slates, according to said cuusua re
turn*. Also, statement No. 20, exhibiting (he
population of each State und Territory, accord
ing to the census of 18-10, and the amount of the
agricultural nud manufacturing productions of
each, as taken from the census returns of that
year, to which ?s added a column exhibiting the
amount said productions would give to each per
mju iu the several States und Territories, and
auotlier column exhibiting the amount of duly
paying imports for that year, and another column
showing what each person hi the several Stales
? nd Territories would consume of suc h imports
if the people of each consumed tbem in propor
tion to the agricultural and manufacturing pro
ductions of each. Also, statement No. 21, mak
ing the same exhibits from the census returns of
1650. Also, statement No 22, exhibiting the
value of United Stales manufactures exported
from the 30tb of June, 1640. lo the 30th of June,
ls05. Also, siateineut No. 23, exhibiting the
value of foreign merchandise annually imported,
re-exported, and consumed, from 1821 to the 30ili
of June, 1855. Also, statement No. 24, exhibiting
the total value of imports, and impels consumed
in the United Slat's. exclusive of specie, during
each fiscal year from 1621 to 1855; showing, also,
the value of foreign and domestic exports, exclu
sive ol specie, and the tonnage employed during
the same periods. Also, statement No. 25, exhib
iting a summary view of I he exportation of do
me-tic produce from the 30th of J un?, 1817, to the
30th ol June, lb05. Also, statement No. 26, ex
hibiting the value of ceriai'i articles, viz : wool
lens. cottons, hempen goods, iron and manufac
tures of iron, sugar hemp, unmanufactured, salt
and coal, from the 30ih of June, 1814, to the 30th
ol June, 1855, (alter deducting the re-exportation.)
with the amount of duty which nccrued on each
during the same periods respectively. Also,
statement No. 27. exhibiting the value of foreign
merchandise and domestic produce exported uu
nuully from 1621 lo the 30th oi June. IbOO. Alsi,
statement No. 28, exhibiting the quantity.of wines,
spirits, fcc., imported annually from 1S43 tothe
30th of June, 1S55. Also, statement No. 20,\ x
hibiting the vhIuc of iiupurts annually from 1621
to the 30th ol June, lt>55. AI*o, statement No.
30, exhibiting the value of dutiable merchandise
re-exported annually from 1621 to the 30th of
Juue, 1655, and showing, nl?o, the value re-ex
ported from warehouse, under the act of August
6, 1846. Also, statement No 31, exhibiting the
aggregate value ol breadstuff's and provisions ex
ported annually from 1821 to the 30th of Juue,
1655 Also, statement No. 32, exhibit ng the
quantity and value of cotton exported annually
from 1621 to the 30th of June, 1805, and the aver
age price per pound. Also, statement No. 3 <,
exhibiting the quantity and value of tobacco nnd
rice exported annually from 1821 lo the 3iith of
June, 1655 Also, statement Nft. 34, exhibiting
the value of iron, and manufiictures of iron and
iron and steel, steel wool and manufactures of
wool, manufactures of cotton, silk and manufac
tures of silk. (lax, linen and linen fabrics, hemp
and manufactures oi hemp, manilla, sun and
other hemps of India, and silk and worsted goods,
imported from and exported to foreign countries,
from 18-10 to 1605; also, showing the export of
like articles the production ol the United Slates.
Also, statement No. 35. exhibiting the value ol
iron, manufactures of iron and iron and steel,
steel, sugar, wines, and all fabric* of u liich wool,
cotton, silk, ilax, or hemp is a component part,
imported annually from lb47 to the 30th of June,
lb55, with the duties which accrued thereon, in
each year respectively. Also, statement No. 36,
exhibiting the amount refunded up to ibe 1st of
November, lb55. under the net dated the second
day of March, 1850, for carrying into effect the
reciprocity treaty; and, also, the amount of bonds
cancelled, as required by said act. Also, state
ment No. 02, exhibiting the custom-houses pur
chased, those constructed and in thu course of
construction under appropriations, with the num
ber ol hospitals constructed, hi the course of con
struction, and .appropriated for. Also, statement
No. 04. of the number of light-houses constructed,
with the names of the several keepers. Also,
the explanations of Mes?rs. Morgan and Shan
non of the tables upon the several censuses, Sec.,
submitted by them.
The foregoing statements prove the past nnd
present condition of our currency, our tonnage,
our imports and exports, with the increasing re
ceipts into our national treasury from customs,
and our progress in population and industrial pur
suits ; also-, that we have derived from the cus
toms the principal fund to pay our annual expend
itures. and from which we have discharged the
debt of our war of independence and ihe war of
1812 and are now discharging the debt created
during the Mexican war. They furnish a reliable
guarantee that we shall be able to draw from the
same source, in future years of peace, more than
an economical administraiion of the government
will require, and authorize a reduction of duties
to the amount ol some ten or more millionsof dol
lars; so arranged, that, by its own operation, it
will be gradual and coniinuous on some articles
of present Importation, and perhaps, in time, pro
duce the necessity of drawing the revenue re
quired for our annua) expenditures from other
sources.
In carrying into effect ih? tariff of 1846, consid
erable difficulties have been encountered under
ihe eight schedules cf that act, imposing different
rates ol duties on the merchandise embraced in
each. These difficulties, instead of diminishing,
as the adjustment of the questions anting at the
treasury, and in the courts, takes place, seem to
increase, owing to the ingenuity of foreign manu
facturers and merchants in minglingmaterialsand
modifying fabrics, and giving ihem new names,
until it is not possible to have uniform action in
levying duties at different ports, or correct classi
fications at the same port. Tariffs or tax laws
should be so plain and explicit in the terms used
as to make it impossible for right-minded officials
to misapprehend what it is lawful to collect, and
the importer what the law requires to he paid.
In remodelling the tariff act of 1840, 1 tbink it
would be proper to retain schedule A of that act,
and constitute another schedule to include iron,
manufactures of iron, steel, manufactures of steel,
sugar, wines, and all fabrics of which silk, wool,
cotton flax, or hemp. i? a component part, whether
manufactured in whole or in patt, and to impose
a duty on the same of twenty-five or thirty per
cent., except flannels and cloths costing less than
two dollars per yard, and blankets, nnd to recon
struct the free list, so ns to include all the raw
material used in our manufactures, as projosed
in my last report; and lo impose on all nrticles
not in the altove schedules, or in the free list, a
duty of not lesif than fifteen, nor more thsn twenty
per cent. Under a tariff act ?o constructed, there
would be little or no difficulty in carrying it inlo
execution in the same way in all the ports, and in
properly classing the articles under the schedules
in the same port, nor in the collecting officers un
derstanding exactly what duly was to be levied
upon each article, nor the importer the amount
required to be paid; and it would certainly take
le*s time at the port of entry, and require fewer
officials to execute the laws. The rate of duty
under the proposed schedule, and of all other ar
ticles except schedule A and ihe free list, could
be so fixed as to make the necessary reduction,
and leave the annual revenue to increase or di
minish, an the imports of duly-paying merchandise
should increase or diminish.
In recommending, for the third lime, the re
modelling the schedules of the tariff act of 1816.
and the reduction ol the revenue from customs. I
have felt constrained, by a conviction ol n? pro
priety. again to recommend, as one of Ihe mode*
of reducing the revenue, that the raw material
used in rfbr manufactures should be admitted free
of duty.
Under laws of great wisdom and forecast all
manufactiiringcountries, except the United Slates,
now admit ihe raw material n?ed in their produc
tions free of duty, thereby giving constant and
profitable employment to capral and labor, and
enabling their factories to furnish a cheaper arti
cle, and 1 etler command both the home and for
eign market, with beneficial employment to their
tonnage in making the exchanges.
The United States, under the federal constitu
tion, enjoy perfect freedom of trade wuh each
other, in ali their agricultural, rnanufaclured,
mineral, and other productions. As to the raw
material produced in the United Stales and used
in the factories of other countries, those countries,
under their laws, obtain ihe raw material free,
whilst we deny to the r*w material produced in
those countries and used in our factories, the
same freedom ; thus failing to nllow the same
constant and profitable employment of our capital
and labor, and the same heneffcial occupation of
the home and foreign market with cheap articles,
of our own manufacture nnd the same beneficial
employment of our tonnage in making the ex
changes.
The proposed reduction of the revenue, by the
admission of the raw material used in our manu
-X ?
foclurvi ireo of duty, hns the sanction of Cob
git-.-s in the admission of guano, gulden seeds,
nuJ animals lor bread, free of duty, being raw
muieriul for the use of agriculturists ; also, copper
ore, tell udheMve, juuk old, oakuin, plaster of
pans uiiground, platina unmanufactured, sheath
ing cooper and sheuthiug metal, and in the return
duly allowed on the exportation of retine sugars,
winch gives the raw material used by sugar
relnierh tree jlf duty, to the extent the manufac
tured article is exported. The principle is re
cognised that taxes should only l>e levied for the
puf|>ose of revenue, and I think it clear, inasmuch
as the duty is nvt neuded, that the principle would
not !>e violated by authorizing the admission of
the raw material used in our manufactures, as
proposed, tree of duty. It is suggested, in con
t< avenliou of the legislation of other manufactur
ing countries, and itr- .111 indirect reduction of taxes
ou the cousumer of the home manufactured
ai tide, and may well be considered a siep in ad
vance towards free trade. ?
The tallies extracted from the census of 1810,
and that of 1850, exhibiting the amount of our
manufactures for those years, and the table of the
import of foreign manufactured goods for the
Fame yearn, and the table of the export of the
manufactures of the United States, offer ample
evidence that we are already a great manufactur
ing, as well as commercial and agricultural people,
enjoying a profitable home market for many of our
productions, and a fair competition in foreign
markets for some of them.
The census of 18-10 was taken soon after the
commercial revulsion, of 1837; which involved
the fortune^ of our merchants, our manufacturers
and agriculturists, and indeed all classes, to such
an extent, that the tables, combined with there
turns of our imports, do not give either the agri
cultural, manufacturing, or commercial business
of that year the favorable aspect they are justly
entitled to ; but the census returns of 1850, taken
during a period of increasing prosperity for all
branches of our industry, exhibit fairly our pro
gress and the Condition of all pursuits at lliat
time, and prove our continued increase in popula
I lion, 111 agricultural, niaiuilacluriiig, and cominer
I cial expansion.
j Au examination of the agricultural and manu
factured articles taken and returned under the
census of 1640 and 1S50 will satisfy any one that
there are many articles of domestic production
and manufacture not taken and ret-irned, and
which greully increased the capacity of the pro
ducers to consume, and enlarge their fund of ex
I changeable articles. It will be seen that there is
I 110 account of the labor employed iu improving
I and clearing lands, ill building canals nnd rail
I roads, houses, manufactories, steamships, and
I other vessels; nor of the labor in transportation,
I on the ocean, the rivers, lakes, canals, railroads,
Sic.; nor of the labor employed in our coal mines;
all of which may be estimated at half the t^alne ol
that engnged in our agricultural and manufactur
I iug productions.
I In examining our tables of exports and imports,
I we find that in most years of our imports exceed
I our exports; and that fact affords to some the
argument that our foreign trade is ruinous to the
I country. The commerce of nations is based 011
the exchange of the commodities of one for those
I of another, whether the exchange is made by
I barter or upon sales for moneys and purchases
I for money. The exchange may not be between
tile same two nations, but the general result of
I equivalents oil the trade of each with all; the ex
ports exchanged for the imports, and the differ
I ence the fair profit and loss on the whole, li may
I be, and often is, mat 111 time of war or years of
I short crops, one nation will import more than she
I exports?that is, purchases more than she i*ells?
for one or more years, and that the profits of owe
year go to pay the losses of a previous or previous
years; but no country can afford to pursue an im
poverishing trade for a long series of years. That
the United States have not. is manifest, because,
I notwithstanding this cxcess of our imports over
I our exports, we have constantly increased in
population, in productions of agriculture, manu
factures, and 111 all other pursuits; and added
largely, year after year, to the fixed capital of the
I country. If we consider our imports as taken in
exchange for our ex|>orts, the State producing the
I export is entitled to credit for the import,although
I the export may have been made by citizens of
I other States, or by foreigners, who paid money
I for the article exported. Neither the census ol
1S-10, nor that of 1850, nor any other data known
to the department, furnish evidence of the ex
change of the productions of each Stnte with the
other States, nor of the amount of foreicn goods
consumed by the people of each State. It will be
seen that the agricultural and manufacturing pro
ductions of all the States and Territories, accord
in? to the census of 1840, amounted to SI,006,133,
099, and that the importation of foreign goods did
not exceed one-twentieth of the amount, whilst
I the agricultural and manufacturing productions.
I according to the census of 1850, amounted to $2,
I 01'^,520,539, and the importations of goods net re
I exported to only $148,051,575; and if we estimate
I the succeeding live years sinews the census of 1?50
to have added filly per cent, to our agricultural
and manufacturing productions, we have S3.01S.
780.808 of such productions. $1,583,393,898 being
articles of manufacture, whilst our importation ot
foreign goods, after deducting the exportation*
for the liseal year ending 30th June, 1855, only
amounted to $233,020,227. This large amount of
our agricultural and manufactured productions is
consumed in the several States and Territories,
except what we export, and for which we take in
exchange an equivalent of foreign productions
ami manufactures, also consumed in the country.
These are 'all considered annnnl production*,
annually consumed, but are not nil strictly so,
there remaining always a stock on hand for the
consumption of the earning year, which is more
or less, according to the home and foreign de
mand; also, sorrr? machinery and other articles,
that last more than a year.
If the free list shall be ndopted, establishing
I free trade in the raw material, our manufacturers
I ucing this raw material, and thus placed in equal
I aomptition with the manufacturers of other coun
tries, will gradually and more and more possess
I themselves of the home market, exclude the
I foreign article, and reduce the revenue. Let it
I be considered that we manufacture all our lurni
I ture. all our carriages, wagons, steam-engines,
I machinery lor our factories and machine-shops,
I most of our leather nnd shoes, boots, hnts, door
I butts, and bolls of all descriptions, bells, balances,
buckles, brads, wood saws, horse-cards, castor*,
I curtain pins, curtain-bands, metal cock*, jach
I screws, curry-combs, coal-hods, candlesticks, gas
fittings, and burners, coffee-mills, cauldrons, heavy
I edge-tools, hay nnd manure forks, gimlets, hat and
I coat wardrobe-hooks, harrows of nil kinds, hoes,
I hollow-ware, p'ane*. ploughs, sad-irons, tailor*
I irons, door-knobs, furniture knobs, brass kettles,
locksof all kinds, iron latches, lines, lanterns, lamps,
levels, lead, cut nail*, clout nails, pins, pump*,
punches, pokers, sand-paper, rulers, iron and
copper" rivets, ropes, rakes, oil-stones, wroughl
1 iron spikes, wood-saws, door-springs, m-indow
*prings, steelyards, scales of all descriptions, steel
I and brass scales, trowels of all descriptions,
spoons of nil descriptions, thermometers, tacks,
vices of nil descriptions, axes, wrenche* of all
descriptions, iron,brs?s, and copper wire, with a
long li*t of other articles, to the exclusion of the
like articles from ol her countries, and then take
I the six articles pro|>osed to l>e embraced in the
new or additional schedule with a duly of 25 or
3) percent, and observe the amount of revenue
heretofore derived from these articles, and that
I expected under the proposed revision of duties,
and examine the American manufacture and pro
duction of these articles, according to Ihe censu*
of 1840 and that of 1850. compared wi'h the im
ports of lho?e years, but more particularly tnke
the first article of iron named in the list, and see
I that the American production nnd manufacture
I lor that year wa* SGO,485 055. nnd the foaeign im
poit of iron and manufactures of iron for the
I same year was $16,333,145, and consider this fad
in conaeclion with our increasing population, and
the fact that each State and Territory, with per
haps one exception, has more iron imbeddeu in
her hills nnd. valleys than would meet Ihe most
extended use of the srlicle by her citizens for
I centuries to come, nnd the conclusion is inevita
ble thai the production and manufacture of iron
in the United iSiates, within a very short period of
years, will exclude the foreign production and
manufacture; then examine the second article of
cotton, in connexion with the fact that already the
American manufacturer is in possession of the
home market, and competing successfully for the
foreign market, as 10 all the coarser fabrics, and
beginning succefsfully the manufa< lure of the
liner fabrics ; then take Ihe third article of wool,
and give the some consideration 10 the home
production in connection with the foreign im
port and the proposed free entry of the raw
material ; and so proceed with the other ar
ticles of Ihe schedule ; and there will hnrdly
remain a doubt of the gradual "I the
revenue ol (lie importations ol all those articles,
and aUo on many of the articles in ihe general
schedule; and if the government shall continue to
draw its. revenues from customs, other articles of
taxation must be resorted to. In order to obtain
j valuable data as 10 the extent lhat American
manufactures |?osseased the home market in
whole or in part, to the exclusion of foreign
manufactures, amongst others, letters were ad
dressed to the Hon. C. T. James nnd the Hon.
Philip Allen, of Rhode Island. Mr. James fur
nished most of the foregoing enumerated articles,
and Mr. Allen the statement and letters marked
No. 57, aad has allowed me to annex them as
part of my report. They are highly interesting.
anil vend to establish the conclusions at which 1
have arrived- vloat, if not all, of the artiiles
proposed to he included in the new schedule, und
particularly iron aud manufactures ol iron, and
option aud woolen fabrics, are u*ed to about the
same extent, according to ihu circumstances ol
the people, in all the States and Territories, and
the tariff, or tax. falls us equally and fairly upon
all sections. as it is possible to raise reveuue from
customs. The statement No. 35 shows what the
mutual revenue upon these articles hat been lor
the last eight years, and tlial the average of the
lust live years h?s been $35,900,31* 2j, whilst the
average of the annual revenue Irom all other
articles, except in schedule A, for the. same time,
hus only been #15,702,25$ 45. This shows that
the necessary reveuue could not be raised by a
lariIf upon imports, without taxing those articles,
and tt is believed the proposed lax of 25 or 30 per
cent, upon them would be levied more lairly and
equally upon all section#, tlmn if one rate of duly
was levied upon all importations without di (crimi
nation An examination ol the non-enumerated
urticle* proposed to be taxed from lo to 20 per
cent, would render it obvious that there is a pro
priety in uot attempting to levy the fame duly
upon I bem as upon the articles proposed for the new
schedule, because they are not all of ns general
use, some being used in one section and some in
another, although some mfcy be used in all.
It may be assumed that all duties, to a certain
cxleiti, raise the price ol the imported nrliele lo
the consumer; and where similar articles are pro
duced or manufactured in the country imposing
the duly to the extent to which the tax rait-es the
price of the home article, it is protective, although
revenue and not protection is the object ot the
law. Therefore, a tariff should be levied upon
articles not produced in the country imposing the
lux. unless for some counteracting reason !t
may be. and no doubt is often the case, that the
consumer does not pay the whole tax?as when
the foreign producer, rather than lose the market,
submits ton diminished price; and it is often the
case that a reductiou of duly does not diminish
the price to the consumer?as when the supply is
not more ihan sufficient for the markets of the
world, or when an export duty is imposed, equiva
I lent, or nearly so, to the reduction; and a duty
I imposed upon the foreign article is olten affected
by the Hate of the currency, particularly when it
is a mixed one ol gold und silver and bank notes.
If Congress had the control of the currency of
the United States, that is to-say, could prohibit
the substitution ol' bank notes for gold and silver
in payment ol debln aud commercial transactions,
the imposition of duties by Congress would have
I the effect t<> leave the home market to the home
I article to the extent to which the tax prohibited
thq import of the foreign article, or raised its
price. , .
An examination of the scvernl lurifl* enacted in
this coutiuy, in connection with the increase ot
I banks, banking capiial, and bank-note circulation,
will afford evidence thai the increased duty has.
I almost, in every instance, to some extent been
I counteracted, within a short time, by the in
j creased circulation of bunk notes.
The United Stxtes, with its mixed currency of
gold, silver, and bank notes, has l>een a good
market for the sale of foreign productions and
manufactures; and. in the general, a bad market
for the sale of our own?the foreign article taking
the gold and silver, the belter part of our currency,
with the increased price given by our bank-no.te
circulation, and raising our productions to such a
I price as not to allow of their exportation, unless
in times of great foreign demand.
lu connection with a modification oi the tariff,
in my first and second reports, a repeal of the fish
ing bounties was recommended, for the reasons
stated in the first report. A more perfect know
ledge of the operation ol the act saii>fies me that
| many foreign seamen enjoy its benefit, and that it
I is otherwise fiuitful of Irauds on ihf treasury, and
I fails to operate as a nursery for American sea
men. The repeal of the net is again recommended
I to the <-onsideration of Congress.
The reports of the First, Second, Third, Fourth,
Fifth, and Sixth Auditors of the Treasury, the
Firi>t and Second Comptrollers, the Commissioner
of Customs, who acts as Comptroller of the reve
nue collected from customs, the Treasurer, Soli
citor, and Rt gister of the Treasury, accompanying
I this report, and marked from 37 to 48 inclusive,
give a satisfactory statement of the condition and
operation of then re-pective offices since the date
of my la;>t report. In my first report it was stated,
that on the 1st of April, 1853, there was $132,521,
154 50 outstanding balance on the books ol the
treasury, and that up to the dale of that re|>ort the
amount had been reduced to 5102,021,549 59; and
my second report stated the same, up to ils date,
I had b^en reduced to $27,583,148 02. Since my last
I named report this balance ha*4>een still lurlher
reduced to the sum of ?24,739,133 41. which in
cludes all outstanding on the books of the treas
I ury from the organization of the government to
1 the present time. Of this sum $9,304,700 39 is
j under judgment, and $2,910,300 83 in suit no^t re
duced to judgment, leaving the sum of $12,523,
I 520 19 in the course ot adjustment and collection,
so far as the same is collectable, by the action ol
the Auditors and Comptrollers, respectively, in
J charge.
J The department has made, and is making,
I efforts to enforce the collection of these outstand
ing balances, and for that purpose has restored
the former practice of having the collections at
tended to by the Auditor and Comptroller, whose
duty it is to settle the accounts in which these
balan< e? arise, not considering the establishment
of the Filth Auditor a* agent of the treasury for
j the collection of theje balances, followed by the
substitution of the Solicitor for the agent, as ex
' onerating the Auditors and Comptrollers from the
} duty of seeing that the suits are duly prosecuted,
J collections made, and the accounts closed on their
j books. The Solicitor of the Treasury is held to
I be an official aid in the prosecution and defence of
1 suits, under the direction of the executive depart
j ment in which the litigation arises. A letter from
J the department to the President, and his order,
J No. 49, u|K>n the subject, accompany this report,
I und place the business of the Solicitor's office, in
I connection with the several executive depart
I ments,in the proper light for the consideration of
j Coagress.
| The system of accounting at the treasury of
1 the United States is that of accounting in an ac
1 tion of account in a suit at law, or a suit in equity,
j !>y reference to an accountant or master in chnn
I eery, with or without instruction, as the parties
j and court deem necessary, for a full exhibit of the
I facts. The accountant cr master state* the ac
I count, for and a?ain?t' the parties, plaintiff and de
I fendant, and makes report in writing of the items
I allowed and disallowed, with reference to the evi
dence and the law applicable to the same. The
parties appear before the accountant or master, ill
I person or by attorney, and furnish the evidence
I relied upon, and also references to the law. The
I practice is. lo file the aceonnt and report in court,
j snd give a day to the parties to except, which is
I done in writing, and afterward* the case is heard
I bythe court, and the exceptions sustained or over
I ruled, and the judgment or decree regularly en
I tered. The snme course is pursued where no ex
ceptions are filed. The court has power to recom
mit the case to the same or another.accountant or
master for a re-statement of the nreount. upon
such principle as it thought essential for justice
between the parties. Before judgment or decree,
these nccount* and reports are examined and con
sidered by the court, from which an appeal or
writ of error is generally allowed to a tribunal
composed of other judges, whose office is to ad
judge enses that have had the action of inferior
tribunals. The points ruled in these cases, at law
and hi equity, are preserved in printed reports,
aud are important in establishing the construction
of statutes and contracts, and the principles of the
common law. the principlea of equity, rules of evi
dence and practice for the guide and in restraint
of ?-ourt# in analogous cases.
The accountants in the treasury make their
stated accounts upon the evidence produced by
the claimant or person required lo account, who
acts in person or by attorney. The accountant,
under the authority of the Auditor, acts for the
United States, in the ascertainment of all counter
demands or set-offs which the 1 nited States have
against the party, and takes the necessary proof
to establish the same, and tocountervail the proof
of the claimant or accounting party
The first question for the decision of the ac
countant when a claim or account i? presented,
is, whether, under the acts of Congress establish
ing the auditorship to which he is attached, tha
ense presented is under its jurisdiction, in whole
I or in part The second, as to the sufficiency of
lh?* account returned under the law and regula
tions. the legality of the items claimed, ami the
sufficiency of the proof offered The third is, what
demands or set-offs the United Slates have against
the claimant or person accounting, and the proof
to sustain the same In the Rrogress of this
work, the accountant counsels with the chief of
his division or with the Auditor.
When the account is stated, it should be ac
companied by a written report, succinctly stating
ihe items charged against the claimant or party
accounting, and the credits allowed, referring to
the law and regulations that govern them and
Ihe proof that sustains the same. It should also
exhibit the items disallowed, and state the reasons
why disallowed : and then it should be examined
by ihe head of the division and have the endorse
ment of his approval, and then be examined and
adjudged by trie Auditor, and, if approved, should
be signed by him.
The Auditor has the right to recommit the ?c
count to the name or another accountant, with
such direction)) as to the item* of the account on
the debit aud credit side, and the law and evidence,
us he deems requisite to tbe justice of the cane.
The reference of the case to the accountant it
the act of the Auditor, just as the references iu
cases at law and ia equity are the acta of the
courts. They are considered as made under the
general rule* iu force iu the otiice, but iu some
cases are referred with specific instruction. Iu
all cases of extraneous proof?that is, proof not
in some of the accounting offices of the treasury?
the Auditor should be consulted, and authorize
the proof, before it is taken.
When ill* Auditor hus finally acted upon the
accou-ft, and affixed his signature to the same,
the account, with ull the orgiual evidence, docu
ments, arguments and reference*, is passed to
the Comptroller, who, by law. is vested with
authority to re-examine and re-judge the same, in
all particulars, not only upon the case as presented
or made before ihe Auditor, but as the party,
claimant, or person accounting muy make it before
him, or as he sees proper to cause it to be made
for the interest of the United State*. The Comp
troller, therefore, examines and adjudge* the ac
count, not solely upon the account and teporl
irtade by the Auditor, and the evidence before him,
but as the evidence presents the case at the time
he decides it.
The practice in the Comptroller's office ia, to
refer the accounts and reports, &?., as received
from the Auditor's office, to an accountant in the
former for reexamination and report, and this
reference is made under the general rules of the
officu, or with such special instructions t*s the
Comptroller may choose to give. If the Comp
troller's accountant finds the account aud report
of the Auditor correct in alt particulars, ho so
reports tothe Comptroller; and if he, on examina
tion, approves, he does it b/ endorsement under
his hand. The account is then closed, and forms
the basis of a warrant upon the treasury, if the
balance be against the United-States, or a call for
payment, if the balance be against the claimant or
person accounting.
In cases where the nccount of fhe Auditor in not
approved, and in cates where additional evidence
is taken, the accountuntof tbe Comptroller should
re-state the account, and make a succinct written
report of the same character of the one the ac
countant of the Auditor should make, and the
Comptroller, if he approves the account, as re
stated by his accountant, should attach his signa
ture to the same. The account thus rw-stated
forms the has k of a warrant, or <-ul! for payment,
in tl e same way as if the Comptroller had approved
the account as stated by the Auditor.
The Auditor is entitled to an independent judg
ment, nnd should exercise it in all cases ; and the
Comptroller is entitled to a like independent
judgment, nnd should also exercise it; but the
1 decision ofthe Comptroller, lifcethat of all appellate
tribunals, prevails over that of the Auditor. In
cases where they differ, the Comptroller should
have the account re-stated, in accordance with
his judgment, as upon appeal, and upon the new
state of facts as presented before him.
The practice grown up of late years, of the
Auditor's changing his account so as to conform
to the opinion of the Comptroller, is in violation
of the principles of accounting established by
Congress, and should be abandoned, and the
practice made to conform to the intention of
Congress, and the principles of accounting as
established and originally practised.
The decisions in the Auditors' nnd Comptrollers'
offices are not preserved in printed reports, as a
guide, and in restraint of themselves and their
successors, in analogous cases, but exist in tradi
tion, or a sort of treasury common law in the
memory of experts in the several office* It is
true, that spine ofthe Comptrollers hnve k#pt a
record of their decisions in cases of difficulty, and
these have served ns precedents in like cases, and
cases involving like principles. The decisions of
the Auditors and Comptrollers, and particularly
those ofthe Comptrollers, if they existed in printed
reports, would give more uniformity to the action
of the treasury. The Auditors and their account
ants, and the Comptrollers and their accountants,
are left to these unreported decisions, the tradi
tions of the treasury law, nnd their own sense of
what is right in the particular case It is, there
fore, not surprising, that uniform action has not
been had in the accounting offices of the treasury;
and that the departures from uniformity have
been greater than those which usually take place
in the decisions of courts of law and equity.
Moreover, in the extension of the business of
accounting, the examination of the accounts
Stated in the first instauce, by the Auditor, and
then by the Comptroller, on appeal, has, in many
cases, been omitted, the Auditor and Comptroller
signing their names on the faith of th? account
stated by their respective accountants; thus
opening the door, and increasing the chances of
departure from correct principle* in the action of
the departments. In practice, the written report
accompanying the account stated, and proving the
ability of the accountant, has been abandoned,
but has been recently restored in accounts slated
for suit, under the authority of letter No. 59,
which accompanies this report. It would cer
tainly be desirable to have each stated account
accompanied bv a succinct written report, re
ferring to the law and the evidence, under which
the debits and credits have been allowed and
disallowed, and each stated account and report
examined and adjudged, first by the Auditor,
and then by the Comptroller; and the princi
ple* of accounting at the treasury, as estab
lished by law, fully and fairly carried out. The
account* stated of moneys paid in;o the trea
sury now amount to over S70,000.000 annu
ally; and of moneys paid out and expended, to
about the same sum ; all of which is passed upon,
in the first instance, in the offices of tbe six Audi
tor* of the Treasury, and afterward*, a* upon ap
peal, by either tbe First or Second Comptrollers,
or by the Commissioner of Customs To con
stitute a good Auditor and a good Comptroller,
requires legal ability of a high order, a special
knowledge of our fiscal and disbursement laws
and regulation*, coupled with unabating industry,
unbending integrity, and promtitude of decision ;
and scarcely less can be required of tbe account
ants in their offices. The Auditors and Comp
trollers, and the accountants under them, consti
tute the safe-guard of the National Treasury,
and have to withstand th* whole army of claim
ant*, and their interested clamor. It is submitted,
with their increased business, and the change in
the value of money, that the Auditors and Comp
troller* do not receive an adequate compensation
for the high qualifications they ought to possess,
and the onerous duties they have to duicharge.
In my former report, the ajtention of Congress
was called to the fact that the dtttie* of the Audi
tors, under existing laws, were not properly
divided; and inconveniences existed in the pres
ent distribution of duties, and particularly in the
army accounts, part of which were settled in the
Second Auditor ? office, and part in the Third, to
the certain delay in the adjustment of account*.
Thin could !?(* remedied by giving the Secretary
of the Treasury authority, with tbe sanction of
the President, to make the proper division and
arrangement of business amongst the several
Auditors and Comptrollers, and report it to Con- 1
gress.
The ayatem of accounting at the Treasury it
easy of comprehension. and aa well calculated to
prevent fraud*, correct errora, and aecure a
proper execution of the lawa, aa any that could
he deviaed. and might be extended to all the ope
rationa of the government, without inconve
nience, and to the greater aecurity of the Na
tional Treaaury and national domain There
would aeem to be no juat reason why the fixed
aalariea of all the offlcera of government ahould
be passed upon by an Auditor, ar.d then by a
Comptroller, before a warrant can be iaaned for
payment; nnd that the Commiasioner of Penaions
and the Cornmiaaioner of Public Landa ahould
have the right jo paaa upon the evidence, and
grant penaiona out of the Treasury. and bounty
land warranta for ao much of the public domain,
without aubjecting their action upon the evidence
and the law to the examination and reviaion of a
Comptroller. It may be that thia want of revi
aion haa been the cauae of many of the fraud*
practised in obtaining penaiona and bounty land*.
It ia believed that the action of two department*
ahould be required, aa in the Treaaury, in all
case* where the National Treaaury or public do
main ia to l?e reached or to l>e effected, and that
no accounta, however created, ahould eacape the
uaual and customary examination and re-exami
nation.
The Independent Treasury act atill continue*
eminently auccessfol in all it* operationa. The
transfers for diaburaement during the fiscal year,
to the amount of $39,407,674 03, have been made
at a cost of ? 19,76*2 35. whilat the premium on
the aale of Treasury drafia haa amounted to $30.
431 87. The receipta and expenditurea during
the fiacal year, amounting to S13I.413.8AU 59, have
all been in the constitutional currency of gold and
ailver, without any perceptible efTecta upon the
currency or on the henlthy bu*in?*aa operation#of
the country. The vaulta of the office of the
Treaaury of the United Statea at Washington,
conatructed with the appropriation made by the
laat Congress, may now be aaid to be both fire
and thief proof, and a aafe depository of the pub
lic money, and that intruated to the di*bur*ing
agenta ol the government, who are ao aituated aa
to avail themaelvea of the advantage of making
their depoaitea with the Treasurer j and the office
of the Aaaiatant Tre'aaurera, and other public de
positoriea, are a* represented in the report (No.
50) of Wrn. M. Gouge, who visited them during
the past year under the authority ol the depart
ment ; and although some of them have not all
the guards ugaiust tire and thieve* which such
depobitoiies should have, yet there has been uo
loss, and with care and diligence there may bo
none for yearn to come ; but, to avoid the possi
bility of a Iocs in those depositories, the depart
incut has estimated for lire and thief proot vaults,
and guards at those places where they do not ex
ist, and iu the custom-houses uow being con
structed. It is hoped Congresa will see the pio
priety of making the necessary appropriations,
and have the depositories of the public money ot
the United Stales as secure as such vaults and
depositories should be. public convenieuce will,
from time to time, require that the number of
public depositories be increased, and so located
as to give the aiivantage thereof to all sectiohs of
the country, and Congress, when necessary,
should make provision for all proper safeguards
for the public money. The table No. 51, which
accompanies this report, exhibits the deposite ac
counts of the various public officer* and disburs
ing agents who have availed .themselves ol the
right of making deposite of the money intrusted
to them for disbursement, with the Treasurer,
Assistant Treasurers, and public depositaries of
the United States, during the past year. The
moDey thus deposited is, for all practical purpo
ses, in thw Treaniry of the United States, lor on
the resignation, death, or removal of any of these
officers or agents, the amouiit is no longer subject
to his draft, or that of a representative, but l y
warrant is placed again in the Treasury, and is
applicable for the purpose for which it was ap
propriated.
'I he notes of banks chartered by the States con
tinue to circulate in some sections of the coun
try, to the exclusion of gold and silver, except in
government transactions; and more particularly
where the banks circulate notes under the tic
uomiualion of live dollars. These small notes are
mostly circulated by banks of doubtful solvency,
at a distance from the place of redemption. They
constitute a depreciated currency, which no one
is willing to hold, and this leads to hasty expendi
tures, in order that the loss may fall 011 others.
The evils of a depreciated currency are attested
by the experience of all countries where such a
currency has been tried, and in none more cer
tainly than in the Stntes of the Confederation.
The legislatures of the several States and the
Congress of the Confederation, all issued bills of
credit during the revolutionary war, and all felt
and acknowledged the evil and the ruinous con
sequences. The conxitution of the United States
wus framed by the men who had felt all tlio
evils thereof; and when provisions were inserted
in that instrument, that no State should emit
bills of credit, nor make anything but gold and
silver a tender in payment of debts, and the coin
ing of money was given to the General Govern
ment, they believed they had provided for a hard
money currency, and against the evils of a de
preciated one ; but these provisions were nulli
fied when the courts held that the Stales had
power to charter banks, with authority to issue
and circulate notes as money. It is now too late
for the courts to retrace their steps, and give a
broader construction to the prohibitions of the
Federal Constitution, whilst it is hopeless to ex
pect the Stales will refrain from granting bank
charters, with authority to i?sue these small
notes ; or that the Stale* will concur in enlarging
the constitutional prohibition in respect to bills of
credit, so as to prohibit this power to banks. The
same local Hnd individual interest that induce the
granting of bank charters with this privilege,
would induce the legislatures of the States to
refuse to Congaess the power of prohibiting the
use and circulation of bank notes. The thirteen
hundred banks now in existence under State
charters, and the circulation of over $200 00(',0:i0
of bank notes as money, in constant competition
with the constitutional currency, attest the mag
nitude of the evil, and justify the worst appre
hensions for the future. The gradual increase of
banks, banking capital, nnd bank-note circulation,
calls for repressive action under appropriate State
legislation. When these thirteen hundred banks
shall be increased to some two,Three, four, or five
thousand, it may be feared their aggregated
power will not be easily overcome, until a sus
pension of specie payments and universal bank
ruptcy shall call for a suppression of the evil, and
a restoration of the constitutional currency If
the Mates shall continue the charter and multi
plication of banks, with authority to i'siie and
circulate notes as money, and fail to apply any
adequate remedy to the increasing evil, and also
fail to invest Congress with the necessary power
to prohibit the same. Congress may be justified,
in the exercise of the power to levy an excise
upon them, and thus render the authority to issue
and circulate them valueless.
The accounts of collectors of the customs con
tinue to be rendered at the close of each month,
and those on the Atlantic settled within the suc
ceeding month, and those on the Pacific coast
within about six weeks, with rare exceptions.
Their disbursement and emolument accounts are
rendered quarterly, and it is intended to have
them settled within the succeeding quarter The
benefits resulting from ihe prompt rendition and
settlement of the accounts manifest themselves
more and more from the test of experience;
accounting is better understood ; the accounts in
better form ; the vouchers more correctly taken,
with fewer improper items, give less trouble, and
take less time in their adjustment. It is believed
the disbursement and emolument accounts could
be rendered monthly with advantage to the busi
ness of the ports and the finances of the country,
and monthly accounts might be advantageously
required in all branches of the public service.
All officers and disbursing agents are required to
keep a book of accounta, and record in it all
money and property received, and all money and
property disbursed, and take proper vouchers for
the same, and disbursing officers of the army to
render monthly statements of their expenditures.
The monthly account would be a transcript of this
book, showing the amount received, the amount
disbursed, with the balance on hand for the succeed
ing month, and could be as easily rendered at the
end of t he month as at the end ouh? quarter, and
*s readily transmitted with the vouchers by majl,
or otherwise, to the proper department and; if the
vouchers were taken in duplicate, and one set
accompany the account and the other retained
with the account book, there could be no difficulty
in supplying a lost account or voucher. Monthly
accounta would be better fortbe disbursing officer
or agent, as he would be compelled at the close
of the month to close his cash and properly
account for the business of the succeeding month,
and procure his vouchers when the disbursements
were made ; and should he make any improper
disbursements, the proper department would Ik*
able at once to applv the correction before the
error was extended. The disbursing officers
would necessarily become better acquainted with
the business confided to them, and in all respects
better discharge the duties, whilat the adjustments
would take less of the lime of the accounting
officers The greatest difficulty encountered is
with the nccounts of disbursing officers and
agents who have failed to render their accounts
regularly as required by law and regulations, and
to accompany the accounts with proper vouchers;
and the greatest loss to the treasury is in the in
solvency of such disbursing officers and nfents.
The arrearages of nearly *25,000.000 in the ac
counts in the offices of the six Auditors attest
this. Authority should be given to require and
enforce monthly accounts and settlements. It
will talre less labor and require less time to settle
monthly than to settle quarterly accounts, give
greater safety, and secure more economy in the
disbursements.
Ii will be oeen by reference to the circular* oJ
the department, that efforts have been made, and
are being made, to have the account* at all th?
custom-houses kept tipon the same uniform prin
ciple*, and the aame form* and routine forth"
entry of good* at *11 the port* with the like ad
vantage of warehousing, exportation, and trans
portation. The collector*, in practice, rendered
no account of the good* in w*rehou*e until ihey
were entered for conaumption and the dune*
paid, when the receipt* appe*red in the monthly
account of dutie* received. They have been
required to render account* of good* in ware
house at thecloaeof each month. The statement
No 58, rendered of good* in warehouse at the
Atlantic and internal port* on the l*t of July,
18Sr>. exhibit* good* in warehoufe to the amount
of $21,549,427, on which there were dutie* un
paid, to the amount of $(1,881,826; al*o the mer
chandise entered for consumption, for warehouse
tranaportation and exportation during that month,
with the dutie* on the **me j the second part of
said *tMement give* the like information tor the
month of Augu*t. The department will, in due
time, have the data to exhibit the monthly opera
tions during the fiscal year.
The revenue law* con*i*t of variou* act* of Con
gre**, enacted during a period of rear seventy
years, with conflicting and incon*i*tent provision*,
sometime* with and aometime* without repeal
ing clauses. There have been judicial construc
tions of iom? ?f these acta, and constructions by
the department, in form of circulars, of mo*l of
them, and these circular* conflict. The collector*
are to l>e guided in the discharge of their duties
by these act* of Congress and the*e circular*, and
find from them a systematic rule of action for all
the case* arising under them. Under a resolu
tion of the Senate, the depnitment caused a revi
sion of lhe*e revenue law* to be prepared and
laid before the last Congrea*; it was primed by
their order, but only the chapter relnting to nas
aetiger ships was paaaeU apon by Congresa. Had