Newspaper Page Text
bf w F liSed wltP of thbtat ey art' now . scewmq, little favor ereons it arlsTng Trdt unpeved STSeets, anu wmw "" V "Ti TJ '27 el in tt winter fBMlhemua. " ?YZU?TFZ?ZZ&&ZZ euinu 6tuS' of tue word. I The of national, banks 1 as, trout the beginning, been open to all, and, n Til the throat the ref Lq tteof UnritolLf tf prepared, Wl e bv ConcOe. aa-H fecoaaswuu f , " . r3T.H f L,r. water and . . .U fthA I I HltA1 MT.UML f(W I U1U1BUL KlWlWt IWNWVh v. " " f 1 I m . . . . M-BCCiM K- -"rrrr.3 I .t.,. hrinir determined noon before the I amount oi circulation auinonzeu o-vorgreo now oa of t tie mast alKbt?fclWto the coon-I national "iuka try, an can boeftt of befcg thev be Pved. nopoliesj lothe , i Sk woruVeuevaeen dS systesaaUdsathe lorgeei. of INTERNAL REVENUE ZsabM by anytribunal or department thereof, I gas u STreanlred to preaent them at an early day, work aad that leglelatiea be directed, aa iar as orcUcable,tb' the defeat of unfonnded and un fast demanda of the Government; and I would fegffMflftMTeaaiUtfrao4a. thtt wttooases be celled upon to appear in person w tMrSfrbefore thoae tribunals having aaid eUtaM before them for adjudication, rroSeLty-tbe tfge aayteR to the 3 a SonalTrewaury aa M aecured by timely iSS-kum oa fheae subjects of any of the -m1li miasm n that will be proposed. ; TTooTwBl be advised of the operation of jbe DUMit of Juetiee by the report of the . A3!ES7&mJrSln1U your attention . to (he was commencea, secunnK nency when completed, i quenuuu so much has ever been accomplished before In any American city for the iaaurelpendltares. The " government having a large reservation in the city, and the nation i.m. tiavinir an interest in their C&Pital, I p . p.. : .. . viii recommend a liberal poucy towaru un iiaw. of Columbia, and that the government should bear its just share of expense of these, Im provements. Every citizen visiting the capital feels a pride In Its growing beauty, and that be, too, is part owner of the Investments made here. I would suggest to Congress the pro- end Invite your attention I priety oi promounrne esHjouBumeufc, TeiShS ws suited olstrik of ; an. tost tuttoU of learning 11 i ----- - - ' i iniMMite gr t n a nurnrai iiw main donrtiou oflands;' f here Is no pUce better of that vepaiuiieut. ; i -i; . intltution than the national capital. There is no other place in which every citizen is so directly interested. : CrT0.8aVIC-BIOBM. . 1 " In three successive message to Congress 1 have called attention to the subject of civil service reform. . Action baa , been taken so far as to authorize the appointment of a Hoard to devise rule governing the methods of making appointments and promo tions; but there never has been any action maktncr theaa. rales bindtns or even entitled to observance, where persona desire removal oi a to them. posted, TWO poney oaa ,,yrg.?grtfa iTo have -anv rdles effecttve we mnab have umsmam m w.p ryX'.". . I the acquiescence oi uoagressvae weu IStZZZrZSZ Tflirt ih the I Executive.,. I recommend, therefore, the .SEJ-Xtoiiif.rt rVhn I subject to your attention, and auggest that a kits of crvOzaaoo and aspport. - When I committee of Congresa might confer - wiIB tna DoaruuuruiK uio urowmtwuu, for the purpose of devising such ralea as could os tub nrrawoR th iitdiaji 4 . v. raucx. untodi towaraa tne maians the ioat admintotratkm haa . " " 1 t4k tkAn A - 1 I pBMaMSe. Mot X UBuBrfJ WHU muv Tko atttM padiarlaMgi begawmgol eaeaeliy pea i wilt bo continued, with only ee time and apace may an. With the encroach- of riTlnraV upon tne inauo rwsrw SoMM wd tasting grounds, disturbances have bcebSwolthe Indians a wbJtes agpaJZyear; and probably will epmtiaue to do ao until each race approdatea e fact I appointment of a friend or the trei Oat the ehaarfchto TSSVSSIm tK offiSl who may be disagreeable I mail. Ttt voOeyhaa been to conect the I .... ff.uTe we mn tamrvAMk the peace ana saietv !SvvZtt 4(mm km been nimtahed. .- n MtiM t- he. for like offences. The be maintained, and which will secure tne services of honest and capable officers, and which wflf also protect them in a degree of in dependence while in office. ' Proper rules would protect Congresa, aa well as the Execu tive, from much needless persecution,, and prove of great value to the public at large , COLORADO. . 'f wnnld recommend to your favorable con sideration the passage of an enabling act for the admission' of Colorado as a State in the Ution. It possesses all the elements of a prosperous State, agricultural and miner!, and I believe has a population to justify such an admission. In that connection I would re commend the ' encouragement of a canal for the purpose of irrigation from the eastern slope of the Rocky Mountains to tte MlFsourl river. As a rale, I have'opposrd the donation of - public . lands for interna imnmHnMiit. owned and controTlt d bv pri vate corporations; but in this instance I make an exception. Between tne msaoan river uu the Rocky Mountains there is a belt of public lands from 300 to 500 miles in width, probably useless for the occupation of man for want of sufficient rain to secure the growth of any products. An irrigating canal would make productive a bolt . wide . aa the supply of water could be made to spread over across this country, and would secure a cordon of settlements connecting the present population of tha mountains and mininK regions with that with aKTtaultural eolleee I nr tke older Bute. Ail the land reclaimed ere certified by railroads, I onld he (rain. If alternate sections were re- ladtaa Territory sooth of Kansas and west of tha Aritaaeea, ta anmaent m ares aou briiuui unal reaevreos to rapport an the Indiana of ihVRockrMountanm.no ttme, nodonbt, an at taeok. except a tew who may select to make UhebTftomeo among the white people, will , be collected there. As aprepexatotTstep fpr this fmmifl I Sfll nvw SMISITCU mn m territorial form of government shomJd be glten aemTwmchwi seenre the treatv rights of UeovHaai aottlen. aodproteetjbelr horaes ftam aUraiBttOB for a period of twenty years. ntntVfomci. . ; ' The ooomtiooi . of the Patent Office ' are -rowiaAwckmaraltad and the accumu uttmTof materialUbecomUg ao great, that Umi Mceaalt v for more room ia becoming ib irtoukdoTby dot. I respectfully invite your aUantioo to lioreporta of the Secretary of the Interior and Commissioner of Patents on, the "fiiUwoomcE. ,. TmobmatSMaof too General Land Office ex 'hiatta a aaaaartal tacnase in all branches In the eoar. Ia that time tksrewere disposed oat of the wibUc londo 18061,098 acres, being an amdunt final nr by 14ao,681 ecree than wen disposed of ioo pfeeedtnTywar. Of the amount disposed oTBSoVWaewere sold for cash, dllHO enewerekoeaaed with military land warrants, S.1M.S13 aueewerema tor noowwuu, was - 4M aeraawere ! nerbx6.nja0 aoroa were . m. I " Taav-wo tor cnoois, lNLTOeeno mated to wacon roads. approved to States as swamp taa aai . aerea ' were certlfled agricultavai eollogea, , common w . a.!-. m.A amlnarlaa 0gmfamjBBtmajBjBH ,f j mmjajs. ' '.aaruuuaMivoi were approved towe otatea ror impiwveaaeota, and i, acres were srlUi Iadiaa aerip. The cash ncelpu faring tha aame time wore a.uo,oi ow, oeing 415 50 In excess oi toe receipts w we am yoar. lnaruag toe year sw,wx,umi o eoaUe mad were sorveyed, an increase of Hi a smunat aorvayed ue previous year ox . Whlcl have , hoea i aurveyed, showing aaitaas aerea of the pwbUe land still uti itBrVonc The Inetaaeed and steadily increas ln xsaiUttas for reaohiag, our onaceupled onkac eirnrr. and for the transporUUoa of iv tained bv the Government, I would suggest tht the retained sections be thrown open to entry under the homestead law, or sold to ac tual settlers, for a low price. ; ; - ,;o ..;..';; i. ' mnm ! ' I renew my prevlons recommendation to Congress for a general amnesty. The number engaged in the late rebellion laboring under disabilities is very small, but enough to keep op a constant Irritation. No possible danger can accrue to the Government by restoring them to eligibility to hold office. I suggest for your consideration the enactment of a law to better secure the civil rights which freedmen are entitled to, but which have not been ef fectually aecured by the enfranchised slave. (Signed , . V ' J U. 8. Gbaht. , KxxcimvB Mabsiok, Dec. J, 18IS. the aarphM prodoaia. ealarges the available field for desirable hosaeaaead locations, thns sAsmdMaaat aeatsaaaoat aara cKtewunK vy aart hi a gradaalty tacreaeing ratio, the area Thoexseaaa4daaareof the representauvfes of a mm coloaw of ehicess of Russia, to eaalaate ao tola oooatiy, aa ia aaderstood with the consent of their Government, If concessions cM be made to enable them to settle In a com pact colony, to of (treat Interest as going to show the right ia wbich our lmttttotione are regarded by aa toduatrious, intelnsrent and ZVitira Mnnl iaalinns of ontOTtns ' civil and nHglmT Ubsrty, aad the aeqHisttioa of fco mtmagraiMHl BI ciUHna m iuirrwi wonid. without doubt, be of much aub- ml beoofit to the eountry I Invite at teatioato the awgnatton of the Beeretary the Iatertorintrdabe-alt. - - vaamtOM BomaAtr. There was paid during the last fiscal year 'for pensions, hselndlngthe expenses of disbnrae- iaent, 5aa,i85lSRm being m amount resspy fOMSa 96ttaa was expended tor the aame portod lira precedto year. ATthough this Ulemewt of expend,taree would indicate a material feduct,amount, mpared the preceding yoat, ia befleved that the ita mmmImi laws, at the last session of Congress, wBl absorb that amount during tha curreat yoar. , At the close ; bl the ' fiscal year there were On the penskm roBs 99j - Inrald aUUtary pebuonem, and Iia,l88 widows, Or obans and dependent relations of deceased aoMiom, a total of that class bf 211,883:18,360 survtvors of thxwar of 1813, afid K om um of sntdieta of that war. pen- aleoedanderthe act of Congresa of February lath. 1871. aaakms: a total of that class of im3 at-iarybf $BM9; 1,430 la valid navy penaloners aad L770 widowa and orpkaam, and dependent relations of rl or sea nil afiteera. aaOors and marlnee of the ; navy. OMkmg a total or. suul aaa a grana tow of pma1owiraol aD daaaeaof 838,411, stowing a aet increase idprmg. the past lacal year of M8L The namea ' at 1JB45 of persona were added to Urn rolls, aad 1,233 aamea were dropped therefrom, for vanooscauaea. j The sjslam adopted . tor the detection bf traada agalaot the Government in the matter nf nanaWnshsa Vi productive of sauafactory results; bat legislation is needed to provide, if , pnaalTilB. against the , perpetrating of such fraiuut-tBe fotoro. . .... S f axwoATuiai.. : ( '5 I ' The ovideaiay Increoxfog Interest In the on of education is a most encouraging fae- geoeral progress at the country, and of Education la earnest in Hs efforts ' to ttre proper direction to the new applicants, aad the lacreaaed facilities which are being " cered to eld the education of the country In UMiraeaftwon. '-.'M-'iwiocat.'' .. Tbs Pbotocol of the conference held at the Depart- mentor rune, bbiiikii" ! yember, 1878, between Hamilton Fish. Secre ary of flute, and Rear Admiral Don Jose Polo De Ban a- . bee. Envoy Extraordinary and Minister PI nipeUn- ttary of Spain- - ' " ' The underslgnedi having met for the purpose of entering into a definitive agreement re specting the case of the steamer Yirginlus, which, i while , under : the flag of the United States, was, on the 81st day pt Opt.nher laat. cantured on the high sea. by the Spanish man of -war Tornado, have reached the following conclusions: Spain, on her part, stipulates to restore, forthwith, the vessel referred to, aad the sur vivors of her passengers and crew, and on the 25th day of December next, to salute the flag nf ttiATTalted States.. If. however, before that date. Spain should prove to the satisfaction of the Government of the United States that the Yirgveius was not entitled to carry the flag of the United Spates, and was carrying it at the tirrtA nf tu.r carjtnre without right, and im properly, the salute will be spontaneously dis pensed with, as In such ease not being neces sary or requirable; but the United States will expect, in such case, -a declaimer of intent of Indignity to its flag in the act committed. Furthermore, it, on Or before the 35th day ot ueeember, it anau be made to appear to the . satisfaction of the United States that the Virgin ius did not right fully carry the American flag, aad was not en titled to American papers, the United -States will Institute inquiry and adopt legal proceed ings against the vessel, if it be found that she has violated any law of the United States, aad against any ot the persons who appear to have hen iruiltv of illegal acts In connection there with. It being understood that Spain shall proceed, according to the. second proposition, made by Mr. Sickles, and communicated in his telegram to the President on the 27th, to In vestigate tne conauci ox we wiuunuco woo violated Spanish law and treaty obliga tions, and innict punishment on those who may nave oflended. , other reciprocal reclamations are to be sub ject to consideration and arrangement between the two governments, and in case ot no agree ment to be subject to . arbitration conditional upon the assent of the Senate of the. United States being given. It is stipulated that the time and place for the surrender ot the Yirginlus and the survivors of these who were on board of her at the time Of captareand also the time, manner and place for the salute to the flag of the United States, it there should be occasion for such salute, be subject to. arrangement between the under signed within the next two days. rSimedl , ' H.FHH. 1 , JoexK. Polo ia Bajuulbkx. S exttaaeted' ' 'all " appltcatluiis-' i b proper indorsements eertifvius to the 'in m and haraeteref the applicants f r t fcw-eiiTiiza-tions of such . Institutions wi'h circulation, were considered and granted, and the .ggrea:ate of circulation for wh ch application are now on file In th e offle", the con, -id rat on f which has been postponed, dot s roi txc d $10,000, 000. That the banks wh ch Wf re first rgaaized were profitable to thir siiarehold rs is conced ed, and it is a cause oi congratulation tnt tne surplus earnings of those years are hus nnded in the surplus fund of more th -n .$130,000,000, as a protection to depositors aud eu.dirbrs, in anticipation of times of panic and disaster. The statistics we present show that the earn ings of the banks of late years have ot -been excessive, and in many cas-es much less than the earnings and dividends UU t. the share holders of manufacturing, railroad, and other corporations realize from the capital invested. If the national banking system.- Uader which two or more national' banks have teen or ganized in almost every city and thriving vil lage in tne union, ana wneretne tarn ngs- oi business arjd the savings of the pe; p can. be deposited with a greater degree of ufety than under any previous system, is, in .any sense a monopoly, it is not the fault of the system, but an evil which arises from the existing slate of tke currency, and it is (fcerteved, tha'.. the na tional banking system is in every s ns i less a monopoly than any uatioual Bja-cai ut uanking ever before authonxed. The system Isuionsider ed a monopoly, because it is supposed that large orofits are denved from the privilege of issu ing circulating uotts, ' whk-h is limited in amount. ' The act of March 12 18W nutlor ixed an additional issue of $54,000,000 of na tional bank notes; but the whole amount baa not yet been issued, chiefly for the reason that in the states to wnicn tney were assineu mere is but little profit ia the issue of touch notes, as will be seen hereafter;- bus because it is erro neously believed that a large profit accrues from circulation to organizations of this kind, the demand for what is termed free banking may be to a large extent attributed. The Re straining act of the State of New. York, as has been seen, prohibited individuals ana associa tions from carrying on the business of banking without first obtaining special charters from the .Legislature. This law was repealed about thirty years after its passage, not without. en countering bi.ter opposition in rue year following the repeal the general banking system f the State ot New York was !au tuorized, a system based on the deposit ot, securities with redemption at a fixed rite of discount, and it is probable that the term "free banking" originated, to a large extent, from the tact that it eupea&eded thu monopoly wbich proceeded it. The phrase "tree banking, ' However, as sow used, is not clearly defined, for there is noth ing in this country to day more Ire than bank ing. Every individual or association of indi. vlduals throughout the country has the right to negotiate promissory notes, draft? i.nd bills of exchange; . to leceivc Uccius; to loan money upon personal or real estate security, and to transact almost every kind of business pertaining to legitimate banking There is little doubt that the term "free banking,"! by manv persons, is understood to mean the unre stricted issue of bank notes to any association of persons organizing a National Bank aud depositing the required amount - of United States bonds as security, but there are but . few persons who have given any considerable attention to ' this subject who are willing to advocate the unrestricted issue of National Bank notes to the amount of the public debt. It is probable that a more satisfactory definition ot free bat k ing would be an isue of paper money which should be promptly redeemed at the commer cial center of the country. Such a currency mav be divided unto ttm-e classes nrst, an unsecured circulation, redeemable at par by the bank, or its agent, at some designated city; second, a secured circulatiou redeemnbie at its own counter at par, and at' tte commercial center at a fixed rate of discount; and third, a circulation exchangeable at par for .lawful money at its own counter and by its agents appointed for that purpose. The currency of the New Ensiaed states previous to the war is a fair example of the first class. - Tbatysttm was generally known as ttie Suffolk sys tem, because the Buflolk Bank, .at Bos ton, compelled the redemption ot the notes of the New England banks at its own counter at par. The system, however, was not free, but a monopoly, as banks couldonly be organized under special c arters o .t iir e 1 from the Legislatures otthe sit New EnJ ind Sates. This circulation was not requiu d to be secured by any deposit pledged lor teat purpose, and the failure of the bant a In . om . of the New England States, which n it ui fr queatly hap pened, almost always resulted in gr. as loss, not only to the creditor, but to the bill holder. The Buflolk Bank, at Boston, forced the re dempMon of the notes at par at its own counter by a system of aseerting and re urnlng the notes to the place ot issue, bu the same notts were invariably at a discount of ODe-eighth per cent, in New York.' The notes of these banks were, therefore, neither safe nor exchangeable at par or coin at the chief commercial center. and was foflbded ufton. thef avowal prinfile that spede wan worth! mate And jwas more d. eitable to Sold thtbe drcu'atlng notes amhoaiz-d. -Tiut iaoruer ttiai trjore should be noUilBtalre; the law it8erfpTOVideTr that t he discount noon the circulating notes at the jfdempj,tt.acnciMhotild JbjonltTQTAr. rkcbipts from all sources $114,075,456 15oMMUaSSlQRKita.DOCtaA8S iUi'OK' 1 . "' tbo estimate for 1 triei tiui ! - .V VJOW Of law Jocry ed trvJTamh-4 tM v,nl fjtin the eigbtt-dit-i . (at first an addM.ioral ded in this office. In 1 r under the act ot i(TTIgencend an en- The ntoth census has been competed, and fko report Urtroof pmbHshed and distributed, aad the worMBg toraoof tMimreaa diabanded. Tka Beeretary of the Interior renews his rec- oswaeodaUoa for a ceases to be taken in 1V7&, to WnleeMfelectthe attention of Con frreae Is mvltod. The original suggestion in ' that beBetf haa met with the general approval Jot the- eovntry, and even It It be : aot 1 deemed advisable at present to erevide for regular ' quinquennial Veeema, a loataa taken ta 1875, the report of wMch eoaM be completed and published before tha one hwadredUi esmiveraary ot our inde pendence, would be especially interesting and valuawev aa ahowmfrthe promsa of the coun try during the first century of our national ex mteace. It beBeved, however, that a regular cemme every irve years wouia De or suostantiai benefit to the country. Inasmuch as our growth haabeenea rapid that the reaulta ot the de cewarnl cenaoa are aeeemsrlly unreUable, as a bads ot estimates for the latter jeers of j de cennial period, f. TB1B DI8TBICT Of 0LD1CBU. Voder the very'sfltcient management of the government, and the Beard ot Public Works of this District, the Ctty of Washington Is ' rantdl aasnmlnr tha annaarsnrn at . a eaaltal of which the aaUoe stay well beiMoud. From a , meat aaaicuuy puae,. three disagreeable , to pass s through in conseqneace ; ot , the THE CURRENCY COTHBOLLKB KHOX-9 "VTBW8 ON , The report of lion. John Jay Knox, . Con troller of the Currency, contains the following oh the subject of free banking: 1 " : , ; '". . "The restraining law of the State of Mew York, act of April 21, 1813, provided that It shall not be lawful for any person, association ot persons or body corporate from and after the 1st day of August next, to keep -any office of deposit for the purpose of discountiae promissory notes, or tor carrying oa any kiad of banking business, or operations which in corporated banks are authorized by law to cam on. or issue anv bills or promissory notes. as private' bankers- unless thereunto" specially 1 notes. It authorized by law. tus jaw piaceo tne wnoie i anouia oe banking interests of the country in the hands ot a few chartered lnsuiuuona, ana was in its effects a grievous monopoly. Most of the States of the Union organized by special act of the Legislature trust companies, savings banks and otner corporations, me can, oi England and the private banks and joint stock banks oi England organizea pnor to is pos sess the right to tosue circulation, and bo such right has been granted to other organizations - TBS HEW TORE BANKING STSTXM. , .The New York State system of free banking is aa example of the second class of currency, and it is probable that the more thoughtful ad vocates of what is termed "(see banking" pro posed that circulation shall oe issued and re deemed under tne national currency act upon a similar plan. Taking it for granted that ad vbcates ot "free banking" Juase their argu ments upon the success of the system author ized in that State by Act of April 18, it may be well to contrast the condition of the currency and of the public debt at the time! of the inauguration of that system, at the com mencement of war, and at the present" time. The currency of the State of New York -first issued was secured by stocks of the different States, and bv bonds and mortgages deposited by corporations with the Controller ot the State. . Subsequently, by various amend' menu the law was so changed as to provide for the issue of circulation based entirely upon the bends of the United States and of . the State ot New York, and that was the basis at the time of the breaking out of the war. At the time of the inauguration of the system the debt of the United States wes $107,484,221, and all these bonds were above par in the mar ket. In 1860 the funded debt of the United States was S44,974,0ltt. The laws authorizing the issue or circulating notes were more nu merous than the States and Territories of the Union, and the rates-of discount in the New York market UDOn the. bank notes issued and in general circulation varied from one-eighth of one per cent, to one and a half per cent. discount, while many bank .aot es that had a local circulation were quoted at from five to ten per cent, discount. - The notes of the New York and New England banks only circulated throughout the whole Union, like the national bank currency of to-day. The funded debt of the United States to-day is forty times the amount ot the,debt ln 1860. . Then the United States issued coin onlv ee eurrencv. FRH I Now, the National JBank notes and the legal-tender notes are about twenty times the amount of the circulation authorized at that time by all the 8tates of the Union. The amount of the funded debt and the currency is, therefore, entirely changed, and it is by no means evident 'hat what was a good thing for the State of Ne York in 1860 is in 1S73 a good thing for the whole United States. The New York State law authorized the issue of bank notes to ail associations organized under its provision, at the face value of United States and New Yerk State six per cent, bonds de posited, and to this feature of the law the National Currency act is indebted for three excellent provisions which insure absolute security to the bill holder. But this law did dot authorize the unrestricted issue of bank It reouired that the bank notes issued'! redeemed at its own counters aad j of one pet cent ItilftW!' hadleen 9b&&JM, Congress at thai timeTorfbe reskmufiorul the gOld-etrrh in sflTef,coin,"orTr the redemption ot silver coinao. copper coin, ucb a law would have been a dead letter, for the eason thit gold i-oiu is known to be of greater intrinsic value in the market than silver coin, and itbe silver of greater intrinsic value than capper, though each of these coins are a legal tender to an amount fixed fey law. , In order to. have a system of redemption, it is necessary that the things to be redeemed shall be known 1o b worth less .! than -the- thin t ia wbich it is to be redeemed, and this priuctple was legalized by the Now York State Legisla ture, when . it provided! that the bank note should be worth in the city of New York one quarter 'of one percent, less than, the gold coinage of the United States. If $40,000,000 was therefore issued, the circulation of New York State was $39,182,819. Its value at itue moment of issue was $100,000 less than $40, 000,000. It the circulation was redeemed thrre, times a year, there would be $300,000 of loss on one side and $300,000 ot gain n the other side, and if ledeemed. sir times $600,000 of loss and $600 000 of gain en the other side. The gain was,-as a general rule.- divided j be tween the banks which tesittd the money' and the banks which redt-emed the same, while, the ceuntrv merchant., and the manufacturer, and the jobber intbe great-cities experienced the loss. . But the circulaUou ot the State of .New York was known to bo, so muca safer, and the discount so .much lees, than the circulation of aty other Sta. e of the Union- that the dit: count was hardly noticed when the loss upon notes ot most bf the other States of the Union o tiuui &wp. hi hl. mww mo v suit was, as might have been expected, that their notes were not fulfilling their function as a circulating medium, but being sent forward and backward not for i the purpose of obtain ing specie, but to be exchanged one tor the other at the clearing bouse, in order to provide a fund in New York for, the redemption ot other notes, and also to prov de exchange at a profit. of from one-fourth to one and one fourth per cent. The amount of the exchange thus gained by tne bankers and brokers, and the amount of exchange tost by the people in these transactions can aot be computed, but there is no doubt that it amounted annually to millions ot dollars. The average amount of specie held by ' the New York .State banks for ' ten ' years ' previous to the . year I960 was $17,565,006 Of this ancu unt about one eighth, say $2,300,000 was held by ;thi country rmnki in their vaults, and the balance say $15,300,000 was held in New York city. : If from this amount should be deducted the coin belonging to the banks and persons outside ot the State, and the amount of checks, payable in coin, it would be found that the amount of circulating notes issued in the State of New York was, on an average for ten years, at least five times the amount of specie ou deposit' for the purpose of redeeming their notes. , The amount ot national bank notes now authorized to be issued is $354,000,000, and the amount of legal tender urns $35filOOO,O0J, so that the pro portion of legal-lender .money in which na tional bank notes are E'pw redeemable is neatly identical, though siigWy In excess. If the jNationar -uacKing law was , amended! ee as to require tne redemption' of. na tional bauk - notes in -. the : lugal tende, notes at one fourth of one per ctnt. discount, as in the New York State law. instead of at par, as providel in the National Currency act, and the national banks bf the whole country would agree to such a provision of the law, the prompt redemption of the national bank, notes would be insured. But the redemption of, this vast amount of circulating notes, It redeemed but once a year, would result in a loss ti the people of the United States. of $900,000; if the notes were to be redeemed four times annually, $3, 600,000; and if redeemed six . times annually $5,400,000. A system oi redemption .' of thin kind would, also, at oncu increase the rate of exchange, from tne rate of one-tenth of one per cent, (now existieg at most periods of the year between the difierent cities of the Union) tofrom one-ha'f per cent, to one per cent., thu4 restoring to a considerable degree the condition of the exchange' at the time of the inauguration of the national banking system, and insuring a loss to the' people annually of millions of dollars.' , , . -, , ; ..... y i ' - ' ; - '''i ' ' 1 S ' ' ' 1 " ... KBDKMPTION. " 1 . . . ; . . - , -Such system would, however, undoubtedly reanlt in the returns of the notes of the National banks, at certain seasons of the year when they were not needed to t lie vaults of the country banks, to be paid out when the de mand for currency increased. - Such a syxtem would also give what is exceedingly desirable at Che-present time elasticity to the currency: The profit upon the circulation ' of National banks organized In the West 'and South during the past year, as will be shown more fully hereafter, did not mueb exceed one per cent, for the country banks, and was less than one half of one percent in the redemption cit ies. Under such a condition of things, with so small a margin of profit to be derived ' from Ishoo' of circulating notes, there would be little demand for circulation, and - consequently but little danger In throwing toe-doors wide open to any association properly organized that might demand such circulation, but with . reduction of i the value of the bonds and -the approximation of -oh value of bank notes to i the value of specie" the -profit would increase, and with the increase of profit, the demand for the tssfle oi additional bask notes would also increase, so that under such a sys tem the issue of bank notes would have a can tinned tendency to lessen the value of the paper dollar, and prevent its approximation to the gold dollar, se that: all ideas of specie pay ment might forever be abandoned In oraer to insure the prompt redemption of the lia tional bank notes the amount issued must be so much increased that the . notes will be. sav at one-eighth of one per cent, discount, and this would probably not be accomplished until an addition was made' So the present circula tion of $100,000,000.;. The same result would follow from the reduction of the. volume ot legal tender notes simultaneously with the increase ot the issues of ' the bank notes, but Congress baa- frequently refused to diminish thetemount of legal tender notes so that the Controller is of opinion that, any general sys tem of free banking, accompanied with re demption, must be postponed until resumption by its agents in New York, Albany or Trey, at a discount. Practically,' notes ; were reduced at the agency, and not . at the counters of the bank. Redemption was the cardinal , principal of tke law, and it was expected that the principle ot redemption would prevent an issue oi circulation which should exceed the requirements of business. Redemption in the New York law meant dis count. It was to be a redemption juo. specie, The Controller; In order to avoid any mlsap prehensibn of his Views upon the subject, desires to ' state he Is not an advocate ot any psnnanent'system of currency, usually known as Irredeemable currency! He believes, hew ever, that the people of this conntry ought not, and will not, submit to the high rates of exchange prevailing previous t0 the war, and that amendment to the"NationaI Currency act, which shall result in restoring 1 the high rates of Exchange, win also result m he downfall bf a system of banking which, it is believed will yet become the most satisfactory of any system , ever established. ; During the past year, as far as his observation has extended, the national bank , notes have been rarely at any perceptible discount lor legal-tender notes, and during ' the late panic ' no dis tinction was ' made 'by the people between the legal-tender notes oT . the United States and the ' national ' bank notes. Both were hoarded alike, as the thinrmost desirable of all others to hold, and it is probable when specie payments shall be resumed that the faith of people will be so well established in the safety of the currency of the banks that no such general system of redemption wBI be re quired as was required of the unsafe currency Issued by the different States previous to the war. If the circulation should" become ' re dundant, as is sometimes the case with the sil ver coinage, it will only be necessary to pre-st-nt the surplus to the agencies in the city of New York, where more than two-thirds Of the circulation is 'now redeemable, in order to re store "the : equilibrium, for it is to- be hoped that, previous to the return to specie payment some, system will be adopted which will -give abundant elasticity to the currency without incurring the expeaie, . and burden ; of general redemption, and without the lose resulting from the high rates of exchange which have always prevailed under such a system. . t THK RKCBIPTS FOR THE CURRENT FISCAL. YBAR ESTIMATED aT $100,000,00. The report of the Commissioner of , Internal Kevenue shows that tue aggregated receipts from mil sources for the year ending with June last, exclusive of the direct tax upon lands and the duty upon the capital, circulation, and deposits ef national banks, were $11,05,456. This amount includes sums refunded and al lowed on drawbacks. The total amount on drawbacks was $52 316 on spirits, tobacco; and general merchantdise. There was refunded for taxes illegally assessed and collected, $618,867. . - ' i BISTIIiKD SPIRITS, WTNB, AND ' FERMENTED t-,-o is...-.. UQtraRS. ; The receipts from the several sources relet' Ing to distilled spirits were, for the year 1872, $49 475,516; for 1973, $5,099,871. The 'ncrease in the receipts rrom trie gallon tax on , aisuiiea Spirits was $10,013,37(5, and from the special tax on rectifiers and dealer in liquor, $1,094. 264,' making a ' total incrw .. from these' sources of over $11,000,000 ' The tax on distilled spirits was raised from 50 to 70 cents per gallon, August 1, 1872. j To this fact is due the large increase in receipts from this source. The large Increase in re ceipts from special taxes is doubtless owing in great Dart to an earLer and more thorough col , lection of special taxes since the introduction of the present system of paying them by stamps.. Apart of the $11,000 000 increase was, however, ofiset by the loss ot nearly $400, 001), during the last t ear, by- the reduction of the value .of stam s far spirits other than tax paid stamps, from 25 cents to 10 cen.s each, under . the , i ct of June 6, 1872. and by the further, loss of a little over $3,000,000 by re peal,- under Vfie same act, of certain taxes .re lating to spirits, leaving a balance of a little more than $2,500,000 increase in receipts from all sources relating to spirits. The produc tion of spiiit. during the-' fiscal year ending June 30, 1873, was in- taxable gallons: .Total produc iou Irjm lua edals other thn fruit, 68,236.567; total production from fruit, $2,914, 800. Totd, $71,151,367. Tke tax collected on spirits withdrawn from warehouse during the fiscal yeir 1872 was $33 457.235.' The tax collected on spirits. with drawn from warehouse during the ficl, year lava was r4i,io aji rue tax on symts im drawn for 'export during the fi&eai year 1873 was $1,651,011. If the tax had been collected on spirits wittid. awu for export during the fis cal yea-1373, as was tne case aunng tne nscu year 1872," the receipts for the Ascil vear 1873 would have been increased $10,651,041, thu swelling the reciiata frQi spiriis' witiidrawo from b;nd' for tne fiscal year 1873 to $42,753, 962. A comparative st.temefit, tberefoie, Of the receipts on account of all spirits- -itodnwn from bond for the two years under like circum stances, would bhow an increase of $1 296,726, or over 31 percent in the receipts, of the fiscal year 1873, over those for the preceding. fiscal year. The act of June 6, 1S72, authorizing ihe withdraval of spiri's-from distillery ware houses for export, without payment ot the lax. nas ocen in operation since August l, ima, under regulations in this office, approved by to Secretary of the Treasury. ' ' ' ' , The tax received on imitation Wines during the year ended Juhe 39, 18T3, was $3,551. ' : ' " ' '. ' FERMENTED LIQUORS ..' -v V ' ' The tax received on fermented liquors, at $1 per barrel, for the years 1872 an4.1873, was $8,009,909 72 and $3,9 U.323 S3 respectively. The uumber of brt wers engaged in the maou facture of fermen'ed iiquoj-s duriug;the fiBcal year ended June 30 IS73, was 3.551, distributed as follows. ' Alabama 5, Ariz na 15, Arkansas 1, California 201, Colorado 44, Connecticut 31, D tsirictof Columbia 18. Delawsre 8, Dik'ta 5, Fiona 3. Georgia 7, Idaho 15, Il inois 210, In d'tanal58, lows 174, Kansas 55, Kentucky 53. Louisiana 17, Matne 8, M-rylird 74, Massnchu setts 49, Mi higan202, Minnesota 13'J, Missis sippi 8 Mi's.uri 130, Moatana 81 Nebraska 28. Nevada 41, New Uampshire 5. Nw Jersey 81, Ne Mexico 8 Ne,w Yovk 481, North Caro line 2, Ohio 96 Oiegon84, Pennsylvania 500, Rhode Island 6, S mth Carolina 4. Tennessee 7, Texas 50, Uta r 29. V'-rmont 2, Virginia 10. Washington Territory 15, VaV Virginia 21, Wisconsin. 280, Wymmg 15. ! m . The number of breweries reported for 1872 WasM-iL ; - i' iir,l.V;; - The increase in the receipts of the last ' over the preceding y;ar will le s?en to be. In num ber of breweries 133, in aggregate 'of tax- pavd $900,854 11, an avirage per brewery of $165 86. '" ' '.' . TOBACCO. , ' .The. total receipts from tobacco for the fiscal year ended June 30, 1373, were f 34,;i5 303 Compared with the total receipts for the fiscal year ended June 30, 1872, there was a decrease of col evtious on ju nmf ctured tobacco of all descriptions, of $1,172,917. There was an in crease in the total receipts from tha manufac ture and. sale of tojaco, snull, aud cigars, in all their forms, over the receipts from the same sources for the preceding fiscal year. f $350, 132. One hundred and sixteen millions, four hundred and fifty thousand nine hundred and thirty-four pounds, are given as the, actual product ot the year, so far is such products have been reported, and showing au increase over the annual production reported for the preceding fiscal year of 9,180,079 pounds. The number of cigars, cheroots, etc, on which taxes were collected during the fiscal year ended Juue 30, 1873, was 1.807,134 646. showing an . excess over the number . reported for; i the preceding fiscal - year Of s 379,328,674. Apprehensions were enter tained by, persons favoring the continuance ot the former system of export bonded,, ware houses that there woHld be a large f ailing off in the quantity ot manufactured tobacco shipped to foreiga countries under the present system. These predictions, however, have' not been verified by actual results, which show that, notwithstanding considerable time , was re quired f nil v to introduce the change and fa- lui'iarize shippma with all the details ot the law and tne ' regulations , utfder which such shipments are now made, instead of there bet ing any falling off, there was an actual increase of some 544,064. pounds of , exported tobacco during the last fiscal year. . Tne consolidation oi the difierent rates of I ax on diucrent classes ot phew ing tobacco has seemed to realize, la practice all the friends of thia measures .pre dicted Ot good result. No branch ot the busi ness seems to have experienced any inconven ience or suffered any diminution in the amount of business formerly done under a graded. tax in consequence of such uniform tax. , Xotonly has there been a large Increase geueraUy in the production and; eale oInuiul factored tobacco, , but it ia believed, s the increased business bas been done with a rea sonable amount of profit to the manufactur ers. ' The law in, its. present .operation t thought to act equally and , impartially. Its requirements have become better, understood. There baa been a more general acouiesceneo In these requirements dur ng the last fiscal ynar than ever before. There have been fewer vio lations -of law and regulations, fewer seizures, and fewer prosecutions reported. , v , ;V v - XUCBLL4NBOUB FIGURES AND 6UOOE8HON. i The "i decrease from banks and bankers aad' adhesive stamps is due to the legislation ap proved June 6, 1872 The class entitled "Ar ticles and Occupations," formerly taxed, but now exempt, includes certain taxes on old lists repealed prior to June 6, 1872, with the tax on income and gas. The aggregate' re ceipts 'for the last fiscal year nxeedd the tbuslastic application to their new'duties, on ' the part of the existing clerical forces, have . obviated sucb supposed necessity. For a con- , sideraule part of the past summer, a number. ot the clerks were employed several hoars each day aiur ine rM(iur oaaiaeee aowrs execut ing and adjus ing the new system. This gra , tnitous labor was cheetUllf fiorfoemdd end la deserving ot special commendation. The Commiasioner recommends that the Col lectors' salaries be fixed at amounts ranging ' from 92,509 to5,000, and the Supervisors' sal aries uaOOOperaansm .. ' j - - TUB OOMMIBSlONra'S RBCOimaNDATIONS. ' ' T he Commissioner says In conclusioai 1 would repeat tue euggesQon coo tain ed in my report ot November 8L1871, that section 44 oi the act oi juiv au, lSOo, should be amended by making the minimum penalty smaller, such penalty being a fine of not less than 1.000, with not less than six months' Imprisonment. ' The undue severity of this punishment would seem to be pbvlous as applied to. toe offenses of carrying on the business of a retailor wholesale liquor dealer, rectifier, or manufac turer of stills, without having paid the special tax In cases where no Intent to defraud exists, the omission arising from ignorance of the law, or from ether emcum tancea not fraudulent, yet constituting oav lacal ' excuse under the terms ot toe section. Tee praetteal effect of providing so disproportionate e punishment tor the offeues leto diaeorjrageeomplaiats, defeat cooviotioas and mauee suspension of sentence In many eases In which sosae mod erate punishment should be enforced, as well to vindicate the law aa to aecuie future com pliauce wUA iu lequiiemeota. ' , The repeal of alt documeatoryatamp duties under Schedule B, except that of two cents on bank cheeks, drafts,; or orders, by the act of June 6. 1872, leave many stamps in the hands of dealers and others throughout the country, for which they had no use, and aaclLas have been p esented to this office have beentedeem ed or exchanged under tue provisions of, Sec tion 161 of the act ot June 30, . 1864, as aenmd. ed by Section 41 jof . the act of June A 1872. The amount so redeemed and exchanged from October 1, 1872, to October 1, 1873, waa $473. 844 54, As it is believed the public have now had a sufficient notification of the williagness ot the Government to redeem or exchange such stamps as might be presented accompanied by satisfactory evidence that they had aot been used, I would recommend such legislation by Congress aa would limit the time to July 1, 1874, within which documentary itassva If sued under Schedule B.of a greater denomination than two cents may be presented for redemp tion under Section 101 of the act Of June 30, 1864, ss amended by Section 41 Of the act of J M071872. ' : . " '.; " - T ne suggestions made In my last annual re port, that the amendments of June ri, 1872, u section 59 of the act of July 20, 1868, relating to the special taxes Of dealers In liquors should be wade more explicit were fully mt by the carefully-drawn House bill If e. 4,059. entitled, 'An set to correct an error ia section 13 of the act of June 6. 1873.' attdto amend certain Sec tions of other sets relating to Internal Reve nue." That bill passed tne House of Repre sentatives on the third day of March last; out, unfortunately, failed of being acted on by the Senate, solely It ia understood,' for ' want of time in which to consider tW It is very impor tant that iheesaw or a similar bin hcu d be enacted as soon so practicable, v.i-;..)-M III ! I ' m-: ; INDIANA '"EWS ai'Jd , Commissioner's estimate by $4,075,456 OS. It, receipts- for 00,T irse is- estimated that the total the current fiscal year 4 will be 000 000.' - This ' estimate will ' of be alloc ted somewhat ; by the continuance or otherwise of the present financial emtt&rras ment. It is not thought that any material loss will ensue from the amounts of taxes received from" the personal consumption of spirits or tobacco, should the financial trouble continue; bu, a loss would undoubtedly be- felt in the amounts of 'spirits used chemically and in the mechanical arts. The plan adopted in lieu of the 60 district plan, to wit: Abolishing the offices of assessors aad assistant assessors, reduced the expenses $1.082,827-lower than the estimated reduction under the 80 district plan, and f 1,000,000 lower than the appropriation ror 137 under the old system, l ne estimates ior ' The Democrats of Knox, county will meet " In convention on the 12ttu , ' ' '' , , . ,4 '"-The State Convention of Univerdalists will meet ia.lAfayette next Wednesday The people of Mishavraka have ' deter mined to fcave their town supplied with water works. -, , ...jj. j .alv v..!,a itf- Louis Bark aud wife, who reside ' near Rtcbmsnd, celebrated their golden wedding on. . That kKgiTlag Day.1 t- v'---- ' The proprietors of luda ia'Kenoer, town ship, Jasper county, are talking of organing a drainage comeany. ,4ii ., , ol1i Uu, , One f amily in Chauocey oontalnt a father ' and four sods who cover , 29 9-3 feet When stretched out in a line, i i -a f.i K A Httle child of 'vTtale,' of Loctiport. Pike county, was scalded to death on Jiie 20Lb. oy puiung over upon neraeii a Doner, gun ot coffee. . ' ' ',. ,.' ' The farmers of some portions bf. fencer county expect, owing to the raparabuadance of mast, to fatten their hogs op half the usual amount ot com. i.,v,v-V't v mhmi , The stockholders ot the Lafayette' Opera House are worried over a little debt remaining duion that' institution and are considering ways and means to pay it off.-' "J";1 Mrs. McCool, of Cass countyi was run ' over by a train ot cars at the Wabash . bridge, on the 22L Her, skull was , crushed, and her right foot cut off,"' The, body dropped Into the water, , ",-,'-- '' ' .. " A young nan named: TJhaooa, of Wash ington townshipt Grant county, was kicked iu the head by a horse a few days ago. His skull was badly broken, and his chances for r icovery are very limited. i- t j :h. . ;' The Seymour 1 inux says a" washrr woman . in that towa "had twelve shirts stole i -from her clothes line the other night.,.' And M. Is a t curious coincidence that, at least two of the editors ot the 2pw)cre(had on clean shirts the nextmorning -j;., f ; ,Tha public schoolst Asdersna ' will not be anected., by the recent failure Of the First National Bank, where the eeheot ftrads were deposited.,--Jiajor Henderson, Treasurer,' hav ing made amairexneate to pay the teachers aa their salaries become dnevj -i ' ' .: ' The Brazil Echo saysV '"At: a mass meet ing of the miners last Thursday.-lt was agreed to accept the proposed reduction of ten cenU a ton on digging-, and all the mines, pa far as we have been able to learn, are working at the re duction. This makes t"be general price through- out the district $1.00.' ' .' i' At Zionsville, on the 29th, a young , man named Charles Toh was stabbed In - toe jrignt side by a boy named Heath. The attending surgeon savs the wound is a deep oa aud time is necessary to determine the " tt suit. The trourl grew ou of au old feud.1 " The ; Brazii;i Manufacturer'. mutJfiner speaks of coke made from the coal of the 'new Strain mines, "vmade without aa oven, by cov ering it with ashes, which. Is bright and" pure as the best Pittsburg coal, and wpld.jcom mana te nignest. price m marxet. SlUii trt j The Warreu County BepnUimn pubtishes a partial li.k of the amasrers by the host oh ding of Clay Dawson, a -steek dealer of that county. They reside to Warreu, Tippecanoe aid. Ben too cuuDtice, over twenty tour In ruber, and represent $29,940 oo elairne. Dawsoa 4m now residing in Moatasaery, liebraaka. It Is said. : The .WaShiBgton OfK 'annoTiucs the sudden departure destination unknown at the Deoutv MarshaL aud cbaritablv adds that ne always appearea to oe "a, seii-sacruicing gentlemn, will ing to do everything In his power to accommodate, even to leaving the town for its good. If such a great, sacrifice oa his part became necessary.", , '." 'i'( " . Tue folly and cruelty of rifling children by one hand, aad any convenient aokL was illustrated .at Evansvlile last Friday by. Mrs. Kpsteia, who lifted bar infant child I rum the fiuor by Ukiog hold of one of iu a." ens. One of the bones of4 the forearm, was f.ictured nearthe wrist,, , . . ., ... , -The panic prevented , the omcials of the Southera 'State Prison from turnieeAng the usual turkey dinner on Thanksgiving day. On account ot this - sligbt, probably, two of the prisoners attempted to escape during the after .noon, but after ielas; uader the shop ftoor all night came out rnoay memmgana gave tnem eelves up.A-...f',fi .i:sH-''i -,ti- - Mr.' Elias Taylof ,'OHO M the' Oldwrt resi dents of Mictigan City, died on the 23d ult rathe 85th Tear Of his age." Before" a'whie man had settled' In Michigan Cltv, he carried tie United States man from Det rott to Ch ir a o. the fiscal vear 1875 show further a reduction of I He lomed a Masonic Lodge In Detroit In 1814. 9.453 or $1,060,458 less than the appropriation and was a member of the first Lodge organised for the fiscal year 1873, and $1,072,285 less than I in Michigan City. .