estimate of the tonnage employed, and the average number of trips the vessels can make, combined with the facts that capital constantly tends to that business, and the growth of our enrolled and licensed tonnage keeps pace, with our increasing population and wealth. To exhibit in connexion with the tonnage employed in our coasting trade, the passengers and freight transported on railroads, the department has had prepared statement No. 82 accompanying this report, of most of the railroads in the several States and Territories, showing the capital invested, the length of road completed in each of them, the annual number of passengers and tons of freight carried, and other interesting statistics of said roads. The amount of coasting tonnage, and the annual number of tons of freight transported on our railroads, with an estimate of that carried by other modes of transfer, exhibit the magnitude of the means required for our internal trade.

A reference to the table of production, taken from the census of 1840, will show that our agricultural and manufacturing production in that year, amounted to $1,006,133,599; and a reference to the like table of production, taken from the census of 1850, will show the agricultural and manufacturing production, for that year, to have been $2,012,520,539, and the ratio of increase. A like ratio of increase, for the five succeeding years, gives $2,602,363,924 as the value for the year 1855. Suppose $1,000,000,000 to be consumed at the places of production, and there is left $1,602,363,924 of production, as the basis of our foreign and internal trade, and the source from which we derive profitable employment, for our registered and licensed tonnage and our railroads. Take fifteen per cent. of this for our foreign trade, which is about equal to our exports, and there is left $1,352,009,336 for our internal trade, constituting the commercial ligament, that binds us together, as one nation and one people. There is no tax or tariff upon the transportation of the articles, of which our internal trade consists, from one place to another, within any of the States and Territories, nor upon the articles themselves; the cost of transportation is the only burden, on the free interchange, over and above the cost of the article, and the profit of the producer or dealer.

The effect of reciprocal free trade is shown by statement No. 29, of our commerce with the British North American provinces, before and since the reciprocity treaty, which went into effect in 1854. In 1853, the exports of American produce to those provinces amounted to $7,404,087, and our imports from them to $7,550,718; whilst, in 1856, the exports of American produce to said provinces amounted to $22,714,697, and our imports from them to $21,310,421.

The combined tables accompanying this report, exhibit our population and elements of greatness in 1790, shortly after the adoption of the constitution and the organization of the government under it, making us, in many respects, one nation and one people. They also exhibit our present population, with all the accumulated wealth of sixty-six years, and all the elements for increasing wealth and greatness, for years to come. We have existed as States and a nation, under wise and equal laws, justly and impartially administered, and have been a constitution and law abiding people, with but occasional

State and individual exceptions. Why may we not hope the history of the past, is to be realized, in our future progress? Under State and national constitutions, we have had free trade with each other, the products of one State supplying the wants of another, and stimulating the industry, enterprise, and prosperity of all. Calls are made for suggestions, for the increase of our internal and foreign trade. Under a conviction that we were collecting, under the existing tariff, more revenue, than a present economical administration of the government, and a wise and prudent outlay for the future, made necessary or called for, and also under the conviction that an overflowing treasury, would induce wasteful and extravagant expenditures, a modification of the tariff of 1846, and a reduction of the revenue from customs, was suggested in my first report, on the finances, and renewed in both my subsequent reports, and is now again repeated, with, if possible, a firmer conviction of its necessity and propriety, and for the same reasons, and others that could be named.

The suggested reduction of the revenue, was, by an enlargement of the free list, so as to admit some articles of consumption and the raw materials used by our manufacturers, to free entry, and lessening the duty on other imports. It was thought that the duties from customs, could well be reduced to some forty-eight or fifty millions of dollars, and leave an ample sum, for all the wants and requirements of the government, including the redemption of the public debt, as it should become due. It seemed to me, that good policy required the raw material used in our manufactures, to be exempt from duty, and our manufacturers placed on an equality, with those of Great Britain and other manufacturing nations, who admit the raw material to free entry. A tax upon the raw material is calculated to increase the cost of the production, by the profits of the importer on the tax on the raw material, and the profits of the manufacturer on his outlay for that tax, and the importer's profit thereon, and of the merchant through whom, it passes to the consumer, interfering with the manufacturers' enjoyment, of both the home and the foreign market, on the same advantageous terms of the manufacturer of other nations, who obtains the raw material, free of duty. A single example illustrates the case: Great Britain admits wool, a raw material, free of duty, and the United States impose upon it, a duty of thirty per cent. This enables the English manufacturer to interfere with the American manufacturer, in the American markets, and to exclude him, from the foreign market. It does more: it surrenders the markets of the countries producing the raw material, to the nations who take it, free of duty. Our manufacturing and commercial States enjoy the markets of our planting and provision States, because there exists no impeding duty, giving preference to foreign nations; but our manufacturing, commercial and provision States do not enjoy the markets of Mexico, Central and South America, and the West Indies, nor of other nations inhabiting the shores of the Pacific, because these nations do not manufacture, and have but little else for commercial exchange, than the raw material, which we tax, and other nations take, free of duty, in exchange for manufactures and other productions; and although we are more favorably situated for commercial intercourse, with them, we yield the

trade to the European nations. Had the suggestion for the admission of the raw material-the productions of those countries-free of duty, received a favorable consideration at the first session of the thirty-third Congress, we would have been importing the raw material, the productions of those countries, in our ships, and those countries would have been taking from us, in exchange, the productions of all sections. of the Union. With prejudices and antipathies lessening, we would soon have become bound to them, and they to us, in the strong and enduring ligaments, of mutual and beneficial commerce. Additional employment would have been secured to our tonnage, and additional markets, for our manufactures of cotton and other products. Mexico, Central America, South America, the West Indies, and other nations on the shores of the Pacific, would have been learning to confide in us, and we would have had an increased interest, in the stability and prosperity of their governments. The enlargement of the free list, and the admission of the raw material, is suggested, as the best and surest mode, of giving increased beneficial employment to our tonnage, and increased beneficial markets, for our manufactures and other products, and of cultivating amity and friendship, with our southern neighbors, and also the best mode, of promoting our own prosperity, next after the mutual free trade, we enjoy with each other. Mutual beneficial commerce is all that is required, to establish, with these nations, lasting relations of peace and friendship, and remove from their minds all apprehension, from our expansion. We should seek commerce, and not dominion. When they shall know and feel that commerce, alone, is our object, and that it is as beneficial to them, as to us, we shall win their confidence, and our friendship will be lasting.

It will be seen that the total gold and silver coinage of the United States Mint, from 1793 when the mint was established, to 30th September, 1856, has been $549,341,914 14, and that the entire import from 1820, when the account was first kept, has been $293,505,743, and the export $436,587,354-there being no account of the imports and exports, prior to 1820.

It is not deemed possible for an agricultural, manufacturing and commercial nation, to prevent the export of gold and silver, because in commercial transactions, gold and silver, besides being a measure of value, constitute articles of commerce, and must obey the laws of demand and supply. The export may be restrained, by having gold and silver currency of a fixed value, and allowing the circulation of no bank-notes, or no bank-notes not convertible into gold and silver, on demand, and a foreign commerce that calls for larger exports of other articles, than the wants of our citizens make it necessary to import; but whilst gold and silver continue products of our mines, and remain articles of commerce, internal and external, requiring equivalent exchanges, the export and import of gold and silver will continue, and should be no cause of alarm. The desideratum of a sufficient uniform currency, of a fixed value, in all the States and Territories, is all that is required, so far as currency is concerned, to secure a sound and healthy foreign and internal trade. A currency, partly composed of bank-notes, has a liability, and to some ex

tent a tendency, to excess, against which convertibility into gold and silver, on demand, is no security; nor is the confining discounts to notes and bills, representing real transactions, a security and never will be, whilst there is such a thing as over-trading and over-production; and for the same reasons, a pure metallic currency, would not constitute a perfect security, against a diminished or redundant supply. Coin vanishes under the influence of wars or apprehended wars; internal revolutions and strifes; political alarms and apprehended political changes; a deficiency in the grain crops, requiring large importations from other countries; the explosion of mercantile speculations; and a continued unfavorable course of foreign trade.

The establishment of a pure metallic currency, would require the withdrawal of the corporate authority, given by State charters, to 1,398 banks, to issue and circulate bark-notes as money, and the consequent withdrawal of $195,000,000, now circulated by them. Congress has no power to act upon the charters, granted by the States, and the States may be without power, during the continuance of the charters, and certainly would not agree to make a surrender of the power to Congress; therefore, a pure metallic currency may be set down, as impracticable, under our constitution and our laws, to say nothing of the sentiment of our people. Statement No. 32 gives, as expected, an increase, in the number of chartered banks in the United States, and an increase, in the capital employed in them. They constitute commercial agencies, with $344,000,000 of capital. They maintain a circulation of nearly $200,000,000 of bank-notes, and afford such valuable facilities, to all branches of our industry, as to to make it undesirable, now, to dispense with them. Their circulation may be so regulated as to give it practical uniformity and stability, by withdrawing their smaller denominations, of notes, and allowing the gold and silver coinage to take their place. The bank reports do not give the several denominations of notes, and amount of each in circulation, but leave it to an estimate of those of $5 and under, which may be set down, at one-fourth of the whole, or $50,000,000.

In 1844, before the gold mines of California were discovered, the amount of gold and silver in the country, was estimated at $100,000,000. The imports, and the receipts of bullion at the mint. from our mines, after deducting the exports, up to the 30th September, 1856, have added at least $150,000,000 to the amount of gold and silver in the country, without taking into consideration, the amount brought in by emigrants and returning travellers, nor the amount carried out by travellers and merchants, not entered at the custom-house, nor the amount, used in our manufactures or employed in the arts. The su; erintendent of the mint estimates the gold and silver remaining in the country at $200,000,000, on the data stated in his communica tion accompanying this report; and the department at $250,000,000, upon the data and for the reasons, stated in my last report. But whether it be the one or the other, there has been added to the gold and silver from $100,000,000 to $150,000,000, since the working of the mines in California. This affords satisfactory proof, that the

$50,000,000 of small-note circulation, could be supplied from our own mines, in the course of three or four years, without deranging our currency, or oppressing any branch of productive industry. The only difference would be the supply of a home demand, instead, of a foreign demand, and the consumption of a less amount of foreign merchandise. This, a healthy operation of trade would soon accomplish. It remains to inquire, in what manner, provision can be made to have the small-note circulation withdrawn, and prohibited. In some of the States, there are no chartered banks, and other of the States have not authorized the issue of small notes; whilst others, under a conviction of the ill effect upon the currency, and upon their productive interest, have prohibited their issue and caused their withdrawal. This is the result of a correct and corrected public sentiment, and may be expected sooner, or later, to extend itself to the other States, and thus accomplish the entire withdrawal of small notes, and the substitution of gold and silver, in their stead, for all the small daily transactions, including the payment of wages. This may not be accomplished for years; but justice to those compelled to use small notes, and to those States, that have not used, or have prohibited their use, in connexion with the losses, a failure to redeem them on demand, always inflicts upon labor, or such a use of them, as to render presentation for payment impracticable, and the infliction of a like loss, may well induce an amendment of the constitution, giving Congress authority to prohibit and restrain their use, and induce such an amendment to be called for by the States that have not used, or have ceased to use, them. At present, an attempt to prohibit and restrain the issue and circulation of small notes, by a resort to taxation, or by applying bankrupt laws to these corporations, would be premature. In my former reports, the subject has been brought to the attention of Congress, with a view to the full consideration of the evil and danger to our currency, from their conttinueduse, under the hope that Congress, or the States authorizing their issue, would take action, to extend the restriction and make it general. If the small notes are withdrawn and prohibited, it is believed the operations of the treasury, in the collection and disbursement of the national revenue, would be as salutary a restraint upon the banks and upon commercial transactions, as could be interposed, and all-sufficient to secure as sound, healthy, and uniform a currency, as it is practicable to have.

An examination of the bank reports shows that the profits of banking, in the great cities and commercial centres arise, principally, from the use of the large deposites kept by merchants, and capitalists in their vaults, whilst the profits of banks, in the rural districts, arise, principally, from the substitution of their notes for money, viz: from circulation. The banks with large deposites, in prosperous times, rely that the loss from withdrawals, will be supplied by other deposites; and the banks of circulation, that the new issues on loans and discounts, will give the means, for the redemption of returning notes. It requires the same character of prudence and foresight, to be able to pay deposites, and to be able to pay returning notes. The new feature in banking, presented in the last bank report, showing the extent of capital employed in unchartered banks, proves banking, a popular as wellas