LAWS OF THE UNITED STATES PASSED AT THE FIRST SESSION OF THE TWENTY-FIFTH CONGRESS. AN ACT to postpone the fourth instalment of deposite with the States. Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That the transfer of the fourth instalment of deposite directed to be made with the States, under the thirteenth section of the act of June twenty-third, eighteen hundred and thirty-six, be and the same is hereby postponed till the first day of January, one thousand eight hundred and thirtynine: Provided, That the three first instalments under the said act shall remain on deposite with the States, until otherwise directed by Congress. APPROVED, October 2, 1837. An ACT to authorize the issuing of Treasury notes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby authorized to cause Treasury notes for such sum or sums as the exigencies of the Government may require, but not exceeding, in the whole amount of notes issued, the sum of ten millions of dollars, and of denominations not less than fifty dollars for any one note, to be prepared, signed, and issued in the manner hereinafter provided. SEC. 2. And be it furth☛ enacted, That the said Treasury notes, authorized to be issued by the first section of this act, shall be reimbursed and redeemed by the United States, at the Treasury thereof, after the expiration of one year from the dates of the said notes respectively; from which said dates, for the term of one year, and no longer, they shall bear such interest as shall be expressed upon the face of the said notes; which rate of interest, upon each several issue of the said notes, shall be fixed by the Secretary of the Treasury, by and with the advice and approbation of the President; but shall in no case exceed the rate of interest of six per centum per annum. The reimbursement herein provided for shall be made at the Treasury of the United States to the holders of the said notes respectively, upon prescntment, and shall include the principal of each note, and the interest which may be due thereon at the time of payment. For this reimbursement, at the time and times herein specified, the faith of the United States is hereby solemnly pledged. SEC. 3. And be it further enacted, That the said Treasury notes shall be prepared under the direction of the Secretary of the Treasury, and shall be signed, on behalf of the United States, by the Treasurer thereof, and countersigned by the Register of the Treasury; and that those offcers respectively shall, as checks upon each other, and to secure the public safety, keep separate, full, and accurate accounts of the number, date, denomination, and amount of all the notes signed and countersigned by them respectively; which said accounts shall be car fully preserved and placed on file in the Treasury Department; and, also, similar accounts, kept and preserved in the same manner of all the said notes redeemed, as the same shall be returned and cancelled; and the Treasurer shall further account quarterly for all such notes delivered to him for signature or is sue by the Register. The Treasurer and Register of the Treasury are hereby authorized, by and with the consent and approbation of the Secretary of the Treasury, to employ such additional temporary elerks as the duties enjoined upon them by this section may render necessary: Provided, Said number shall not exceed four, and with a salary of not more than at the rate of twelve hundred dollars to each per annum. SECTION. 4. And be it further enacted. That the Secretary of the Treasury is hereby authorized, with the approbation of the President of the United States, to cause to be issued such portion of the sid Treasury notes as the President may think expedient, in payment of debts due by the United States to such public creditors or other persons as may choose to receive such notes in payment, as aforesaid, at par. And the Secretary of the Treasury is further authorized, with the approbation of the President of the United States, to borrow, from time to time, not under par, such sums as the President may think expedient, on the credit of such notes. SECTION 5. And be it further enacted, That the said Treasury notes shall be transferrable by delivery and assignment endorsed thereon, by the person to whose order the same shall, on the face thereof, have been made payable. SEC. 6. And be it further enacted, That the said Treasury notes shall be received in payment of all duties and taxes laid by the authority of the United States, of all public lands sold by the said authority, and of all debts to the United States, of any character whatsoever, which may be due and payable at the time when said Treasury notes may be so offered in payment. And, on every such payment, credit shall be given for the amount of the principal and interest which, on the day of such payment, may be due on the note or notes thus given in payment. SEC. 7. And be it further enacted, That any person making payment to the United States in such Treasury notes, into the hands of any collector, receiver of public moneys, or other public officer or agent, shall on books, kept according to such forms as shall be prescribed by the Secretary of the Treasury, give duplicate certificates of the number and respective amount of principal and interest of each and every Treasury note thus paid by such person; and every collector, receiver of public moneys, or other public officer or agent, who shall thus receive any of the said Treasury notes in payment, shall, on payment of the same, receive credit both for principal and interest computed as aforesaid, which on the day of such last mentioned payment shall appear due on the note or notes thus paid in, and he shall be charged for the interest accrued on such note or notes from the day on which the same shall have been received by him in payment as aforesaid to the day on which the same shall be paid by him as aforesaid. SEC. 8. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authonized and directed to canse to be reimbursed and paid the principal and interest of the Treasury notes which may be issued by virtue of this act, at the several time and times when the same, according to the provisions of this act, should be thus reimbursed and paid. And the said Secretary is further authorized to make purchases of the said notes, at par, for the amount of the principal and interest de at the time of purchase on such notes. And so much of any unappropriated money in the Treasury as may be necessary for that purpose, is hereby appropriated, for paying the principal and interest of said notes. Sec. 9. And be it further enacted. That a sum not exceeding twenty thousand dollars, to be paid out of any unappropriated money in the Treasury, be, and the same is hereby, appropriated, for defraying the expense of preparing, printing, engraving, signing, and otherwise incident to the issuing of the Treasury notes anthorized by this act. See. 10. And he il further enacted. That if any person shall falsely make, forge, or counte, eit, er cause or procure to be falsely made, forged, or counterfeited, or willingly aid or assist in falsely n.aking, forging, or counterfeiting, any note, in imitation of, or purporting to be, a Treasury note aforesaid; or shall faisely alter, or cause or procure to be falsely altered, or willingly aid or assist in falsely altering any Treasury note issued as aforesaid; or shall pass, utter, or publish, or attempt to pass, utter, or publish, as true, any faise, forged, or counterfeited note, purporting to be a Treasury note as aforesaid, knowing the same to be falsely forged or counterfeited, or shall pass, utter, or publish, or attempt to pass, utter, or publish, as true, any falsely altered Treasury nie, issued as aforesaid, knowing the same to be falsely altered, every such person shall be deemed and adjudged guilty of felony, and being thereof convicted by due course of law, shall be sentenced to be imprisoned and kept to hard labor for a period not less than three years, nor more than ten years, and be fined in a sum not exceeding five thousand dollars. SEC. 12. And be it further enosted, That if any person shall make or engrave, or cause or procure to be made or engraved, or shall have in his custody or possession any metallic plate, engraved after the similitude of any plate from which any notes issued as aforesaid shail have been printed, with intent to use such plate, or to cause or suffer the same to be used in forging or counterfeiting any of the notes issued as aforesaid; or shall have in his custody or possession any blank note or notes engraved and printed after the similitude of any notes issued as aforesaid, with intent to use such blanks, or cause or suffer the same to be used in forging or counterfeiting any of the notes issued as aforesaid; or shall have in his custody or possession any paper adapted to the making of notes, and similar to the paper upon which any such notes shall have been issued, with intent to use such paper, or cause or suffer the same to be used in forging or counterfeiting any of the notes issued as aforesaid; every such person, being thereof convicted by due course of law, shall be sentenced to be imprisoned, and kept to hard labor, for a term not less than three nor more than ten years, and fined in a sum not exceeding five thousand dol lars. SEC. 12. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized to make and issue, from time to time, such instructions, rules, and regulations to the several collectors, receivers of public money, depositaries, and all others who may be authorized to receive the said Treasury notes on behalf of and as agents in any capacity for the United States, as to the safe keeping, disposition, return, and cancelling of the said notes so paid to and received by thent respectively, and as to their accounts and returns to the Department of all such receipts, as may seem to him best calculated to promote the public interests and convenience, and secure the United States and the holders of the said notes against frands and losses: Provided, That nothing herein contained shall be so construed as to authorize the Secretary of the Treasury to reissue any of said notes, but upon the return of the said notes, or any any of them, to the Treasury, the same shall be cancelled. SEC. 13. And be it further enacted, That it shall be, and hereby is, made the duty of the Secretary of the Treasury to cause a statement to be published monthly, of the amount of all Treasury notes issued or redeemed, in pursuance of the provisions of this act; and that the power to issue Treasury notes, conferred on the President of the United States by this act, shall cease and determine on the thirty-first day of December, eighteen hundred and thirty-eight. An ACT to regulate the fees of the district attornevs, in certain cases. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, in all cases of extension of the time of payment of bonds given for duties on imports, it shall be according to such directions as may be given by the Secretary of the Treasury; and the extension- of payment of the old bond, or the taking of a new bond, shall be by the respective collectors subject to no other charge than such as may be legally receivable on the taking of an origi nal bond, upon the entry of merchandise. SEC. 2. And be it further enacted, That no fee shall accrue to any district attorney on any bond left with him for collection, or in a sui commenced on any bond for the renewal of which provision is made by law, unless the party or parties shall n glect to apply for such renewal for more than twenty days after the maturity of such bond. APPROVED, October 12, 1837. An ACT to continue in force certain laws to the close of the next session of Congress, Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembed, That all acts and parts of acts, or provisions contained within any act, which, by the terms thereof, are made to expire at the termination of the first session of the twenty-fifth Congress, be, and the same are hereby, declared to continue in force to the end of that session of Congress which shall commence, or shall be in session, on the first Monday of December, eighteen hundred and thirty seven. APPROVED, October 12th, 1837. An ACT to amend an act, entitled "An act to provide for the payment of horses lost, or destroyed in the military service of the United States, approved January 18th, 1837 " Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any person who has turned over to the service of the United States, his horse, saddle, bridle, or equipments, by the order of the commanding general, or other commanding officer, shall be paid the value thereof; That the claims provided for under this act, shall be adjusted by the Third Auditor, under such rules as shall be prescribed by the Secretary of war, with the assent of the President. This act, and the act to which this is an amendment, shall extend to mules as well as to horses. Decisions under this act, shall be recorded as they are required to be recorded by the act aforesaid, and payment shall be made as is required by that act. This act shall extend to cases where any person mentioned in the act to which this is an amendment shall have died is the serVice, and his horse, saddle, brittle, or equipments, shall have been turned over to an officer, or other person for the benefit of the United States, by order of the proper officer commanding, and not restored to the representative of the deceased or paid for by the United States. APPROVED, October 14th, 1837. An ACT making further appropriations for the year eighteen hundred and thirty-seven. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums be, and the same are hereby, appropriated, to be paid out of any unappropriated money in the Treasury, viz: For pay and mileage of the members of Congress and delegates, two hundred and forty-eight thousand five hundred dollars. For stationery, fuel, printing, and all other contingent expenses of the Senate, thirty thonsand dullars. For stationery, fuel, printing, and all other contingent expenses of the House of Representatives, fifty thousand dollars. For the contingent expenses of the navy, as enumerated in the act of the third of March last, in addition to the amount appropriated by that act, one hundred and twenty thousand dollars. For the relief and protection of American seamen in foreign countries, ten thousand dollars. For defraying the expenses attending the prosecution of the claim of the United States to the legacy bequeathed by the late James Smithson, of London, five thousand dollars. For the contingent expenses in the office of the Treasurer five hundred dollars. For preparing printing and binding documents ordered by the resolutions of the Senate of the second July, eighteen hundred and thirty-six, twentyfifth of February, eighteen hundred and thirty se ven, and the second of March, eighteen hundred and thirty-seven, to be disbursed under the direc tion of the committee to audit and control the contingent expenses of the Senate, twenty-five thousand dollars. SEC. 2. And be it further enacted, That, if the revenue from duties, or from the sales of public lands ren aining in the hands of the receiving and collecting officers, be not sufficient at any time to pay debentures and other charges which are by existing laws made payable out of the accruing revenue before it is transferred to the credit of the Treasurer, the Secretary of the Treasury is hereby authorized to pay the said debentures and other charges out of any money in the Treasury not otherwise appropriated. SEC. 3. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized to arrange and settle any of the outstanding transfer drafts given to to transfer moneys to the States under the act of twenty-third of June, eighteen hundred and thirty-six, and which have not been paid by the depositories upon which they were drawn or otherwise arranged and settled by the United States by receiving such drafts at par in payment of any debts due to the United States, without any allowance of interest for the time the drafts have been outstanding and unpaid, or any other allowance for interest or damages of any description. APPROVED, October 16th, 1837. AN ACT making an additional appropriation for the suppression of Indian hostilities for the year one thousand eight hundred and thirty-seven. Be it enacted by the Senate and House of Represen tatives of the United States of America in Congress assembled, That the further sum of one million six hundred thousand dollars shall be, and the same is hereby, appropriated out of any money in the Treasury not otherwise appropriated, to defray any expenses which have been or may be incurred, in preventing or suppressing the hostilities of any Indians: to be expended under the direction of the Secretary of War, conformably to the acts of Congress of the nineteenth of March eighteen hundred and thirty-six, and of the second of July eighteen hundred and thirty-six, and of the acts therein referred 10. APPROVED, October 16th, 1837. An ACT authorizing a further postponement of payment upon duty bonds. Be it enacted, by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he hereby is, authorized to grant such further extension of credit upon all bonds for duties now outstanding as shall make the whole extension of credit upon each bond nine months from the time when the original bond became due and payable; making the extension in each case to depend upon the same conditions as to additional security, the payment of interest, and other terms, which have been prescribed by the Treasury Department, to the extersion of revenue bonds since May last: Provided, That nothing herein contained shall be construed to include any existing bonds where the parties to the same have not, since the bonds became payable, given additional security, or made part payment, and are by the proper officers of the Government, considered insolvent, or unsafe securities for the payment of their bonds. SECTION 2. And be it further enacted, That a credit of three and six months shall be allowed on the duty on all merchandise which shall have been or may be imported on or before the first day of November next, upon which the duties are payable in cash, and that the bonds received for such duties shall be payable in equal instalments bearing interest at the rate of six per cent. per annum, and shall be in the form and upon the conditions prescribed by existing laws and by this act. SECTION 3. And be it further enacted, That where the security in any bond which has been, or may hereafter be postponed, is entirely satisfactory, the principal or sureties in the same shall not be disabled from being in the mean time, till the period of postponement provided for by this act expires, received as principal or sureties in other bonds for duties, notwithstanding the bond first given may not have been actually paid, discharged, or extended before or on the day it fell due: Provided, That such principal and sureties shall be found, in all other respects, sa'e and satisfactory security for the funds to which they may be proposed as par ties. SECTION 4. And be it further enacted, That the operation of all prior laws, and parts of laws, so far as inconsistent with this act, be suspended in the particulars in which they may conflict with, or differ from, its provisions, until this act shall cease by its own limitations. APPROVED, October 16th, 1837. An ACT for adjusting the remaining claims upon the late deposite banks. Be it enacted, by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he is hereby, authorized to continue to withdraw the public moneys now remaining in any of the former deposite banks, in a manner as gradual and convenient to the institutions as shall be consistent with the pecuniary wants of the Govern. ment, and the safety of the funds thus to be drawn; and that no further interest than that required by the deposite act of the twenty-third of June, one thousand eight hundred and thirty-six, under which those deposites were made, shall be demanded of any bank which has met, and shall hereafter meet, the requisitions of the Department. This provision shall also extend to such public moneys as may remain in any of the said banks, whether standing to the credit of the Treasurer of the United States, or of any disbursing or other public officer of the Government. SECTION 2. And be it further enacted, That in case of neglect or refusal by any of the said banks to comply with the requisitions of the Secretary of the Treasury, as he shall make them, in conformity with the first section of this act, suits shall be instituted, where that has not already been done, to recover the amounts due to the United States, unless the defaulting bank shall forthwith cause to be executed and delivered to the Secretary of the Treasury, a bond, with security to be approved by the Solicitor of the Treasury, to pay to the United States the whole moneys due from it in three instalments. The first to be paid on the first day of July next, the second on the first day of January, eighteen hundred and thirty-nine, and the remaining instalment on the first day of July, eighteen hundred and thirty-nine; and the default mentioned in this act on which interest is to commence at the rate of six per shall be understood to be the neglect or omission of said banks, or any of them, to answer the drafts or requisitions of the Secretary of the Treasury, made on them according to the provisions of the first section of this act; and interest thereon at the rate of six per centum per annum, from the time of default, together with any damages which may have accrued to the United States from protests of drafts drawn upon it, or from any other consequence of its failure to fulfil its obligations to the public Treasury. APPROVED, October 16th, 1837. AN ACT for the relief of D. P. Madison. Be it enacted by the Senate and House of Representalives of the United States of America in Congress assembled, That the President of the United States be, and he is hereby, authorized and requested to cause to be executed, a grant and reconveyance to Mrs. D. P. Madison, her executors, administrators and assigns, of the right to publish in foreign countries, for her own benefit, the manuscript debates of the convention which formed the Constitution of this Government, as well as the nett avails of any such publication which may have been ordered by her: Provided, however, That she shall not be allowed to withdraw from the possession of the Government either of the copies of said debates which accompanied her conveyance. Approved, October 14th, 1837. A RESOLUTION directing the postage on letters sent by the Express Mail to be paid in advance. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Postmaster General be, and he is hereby, directed to cause the postage on all letters sent by the Express Mail of the United States to be paid in advance at the time of depositing them for transportation by said mail. TO THE CONGRESSIONAL GLOBE. 25th CONG.......1st SESS. REPORT OF THE SECRETARY OF THE TREASURY. TREASURY DEpartment, In pursuance of the duty of this department to submit to Congress, at each session, the state of the finances; and in conformity with the request of the President, that such other fiscal matters should, on this occasion, be presented, as appear to require early legislation, the undersigned has the honor to offer the following report: 1. CONDITION OF THE TREASURY. It is not proposed to give all the particulars, relating to the receipts and expenditures, which usually accompany an annual statement. But nn exposition of them, under the customary general heads, so far Ias they have been ascertained, for the first half of the year, is subjoined. Brief estimates for the other half are made, and such explanations added, as seem necessary to show with clearness not only the condition of the Treasury at this time, but its probable state for the residue of the year. According to the Treasurer's running account, the whole amount of available money in the Treasury on the 1st of January, 1837, applicable to public purposes, was $42,468,859 97. From that sum, there were on that day reserved $5,000,000; and the balance, being $37,468,859 97, was, under the provisions of the act of June 23, 1836, to be placed in deposite with the States. It is ascertained that $27,063,430 80 of it have since been actually received by them. The amount of that portion of the first three instalments, the payment of which has not yet been acknowledged, though transfers were seasonably ssued for it, is $1,165,575 18. The remainder is $9,367,214 98, and is the sum which was designed for the fourth instalment of deposites with the States on the 1st of October next. The amount reserved n the Treasury on the 1st of January has since been increased, by returns subsequently received from banks, to the sum of $6,670,137 52; and which, of course, could not then be ascertained or taken into computation. To these may be added about $600,000 which remained in the hands of receivers, and $50,000 in those of collectors, subject to draft. All these make the aggregate for that half of the year $13,187,182. If no further postponement be grant ed on duty bonds, it is estimated that the whole receipts for the last half of the year, from all sources, will be about $9,500,000; which would make them, as ascertained and estimated for the whole year, $22,687,182. But if the brief extension of the present postponement, brought into view hereafter, and favorably regarded, be directed by Congress, the receipts will probably be about $7,000,000; while, by a postponement of the whole to another year, they will not be likely to exceed $4,500,000. Looking at our whole revenue therefore, from all quarters, it appears that the balance of money reserved at the commencement of the year, as finally ascertained to be $6,670,137, with the actual receipts for the first half at $13,187,182, and those now anticipated for the last half of it at $7,000,000, will constitute an aggregate of $26,857,319. The expenditures required to meet existing appropriations, during the last half of the year, will, as computed, equal the sum of $16,000,000; making for the whole year $32,733,884. Whatever expenditures shall arise within the year, upon new appropriations which Congress may think proper to make, will require a corresponding addition to this amount. But, without them, it will constitute an excess of $5,876,365 of expenditures over both the receipts and the balance at the commencement of the year; besides not leaving, at the close of it, any thing in the Mint or the Treasury for future uses, or to meet contingencies. In order, therefore, to discharge that excess, and retain, of the money reserved on the 1st of January, one million, which is the smallest sum deemed proper, under the acts of Congress, for the efficient operations of the Mint, and at least three or four millions more, to answer sudden and contingent calls, there will probably be a necessity to resort to the deposites now with the States, and to the instalments destined for them in October, or to some other resource, for a sum equal to $10,000,000. By a report of the Treasurer of the 30th ultimo, it appears that the balance in the Treasury, including what was in the custody of banks, the Mint, and collecting officers, was then $14,596,311; that the amount of this, subject to immediate draft, was only $8,928,072; but the whole balance in the Treasury, including all which had been deposited with the States, and ordered to be, though only a small part of the amount is subject to immediate draft, was $41,532,381. Deduct all which has been, and was designed to be, deposited with the States, and there would be no balance left on hand subject to draft, though including every thing in the Mint, and in the possession of receivers and collectors, which is applicable to general purposes. Hence it is probable, that, besides the deficiency for the expenditures of the year, no sufficient means of any kind will exist on the first of October next, after defraying the intervening expenses, to complete the instalment of deposites then payable, unless a large part of the bonds for duties postponed to that day, and amounting to near $4,000,000, and the million and a half then due on the first bond from the United States Bank, shall be punctually paid, or, in the mean time, some provision on this sobject made by Congress. The money standing to the special credit of the Post Office Department and the Patent Office, as well as various trusts, is not included in the above exhibit, for reasons explained in the last annual report. Outstanding and unexpended appropriations at the end of the year will, in this view of our finan, cial condition, be still left charged on the Treasuryamounting to about $16,000,000. This does not differ much from their amount at the close of the last year. Whether the appropriations unexpended on the first of January, 1838, prove, therefore, to be one or two millions larger or smaller than is now anticipated, it must be manifest, from all the above data, that some new legislation is indispensable to complete satisfactorily the service of the year, and leave a suitable amount in the Mint and the Treasury. Indeed, before submitting the last annual report, the indications of a decrease in the receipts, and of an approaching revulsion in our commercial prosperity, appeared so strong to the undersigned, that he felt compelled, with reluctance and regret, because differing so much from the views of many others, to estimate the accruing receipts for the year at only $24,000,000. As the appropriations asked for were about $27,000,000, it was then suggested that the occurrence of a deficiency was probable. When those 11 ON THE POSTPONEMENT OF THE PAYMENT OF BONDS FOR DUTIES. The first suggestions, which will be submitted concerning such special legislation as appears proper in consequence of the recent embarrassments of the country, relate to the postponement of the payment of bonds for duties. Early in May last, the collection of the revenue from customs became much obstructed through the severe pecuniary difficulties of the mercantile interest. The Treasury Department felt an anxiety not only to take steps which might increase the security of the Government for eventual payment, but, in an emergency so great, and to many so unexpected, to furnish all the relief from sacrifices which could judiciously be extended under its limited powers, and in anticipation of what would probably be its straitened condition in a few months. A postponement of the payment of the bonds falling due was, therefore, and in accordance with the views of the Executive, authorized for periods of from thirty to ninety days, on interest and additional security, and in a manner more liberal than usual, by permitting it before as well as after suit, in all cases of embarrassment, great hardship, or insolvency. The particular terms, and the reasons for such postponement, are more fully set forth in the documents annexed. When the difficulties in discharging bonds in a legal currency became increased by the suspension of specie payments in some of the principal cities, and the President decided to call a special session of Congress, the postponement was allowed to be extended till after the commencement of the session, in order that an opportunity might be afforded to obtain further relief by new legislation. Urgent requests were made for an indiscriminate delay of payment on all bonds to the 1st of January next, and for the receipt, in discharge of them, of notes issued by banks not paying specie. It was not deemed proper to comply with these requests. But as long a delay as our fiscal situation justified, and every relief as to the currency which seemed legal, by the receipt of debenture certificates and Treasury drafts, for duties, were permitted in mitigation of the existing embarrassments. Having, in this, done all that a sound and liberal exercise of the discretion of the department appeared either to justify or require, no intention exists, nor would it be proper in the present state of the Treasury, to grant any indulgences beyond those already authorized, without the express direction of Congress. Some further facts which may be useful to aid its members in coming to a correct conclusion on this subject, are, that the amount of bends which have already been postponed to the 1st of October, is about $3,500,000, and by that date will, it is presumed, be increased to $4,000,000. If Congress permit no longer postponement, the receipts for the year will probably be increased by the indulgences already granted, as they have been allowed, generally, on additional security, and a l ways on interest. But as suits and delays in collection will still oc cur, though to a less extent that in the first stages o the pressure, it is expected that not over two-thirds of the amount postponed before the close of this month can be collected during the current year. The bonds already put in suit since the middle « May amount to nearly $1,000,000. But if • gress extend the postponement till next January, a was originally requested by some of the parties, or for one year, as recently requested by the Chamber of Commerce of New York, the receipts for the 25th CONG....1st Sess. present year will probably be thereby lessened from four to five millions. Should Congress, however, adopt an intermediate course, as an act not of mere benevolence, but of additional relief, which appears reasonable, under the extraordinary mercantile distresses of the times, and more safe to the Government, in respect to eventual collections, it might sanction a delay not to exceed, altogether, six months beyond the original period of payment, in any particular case. It is computed that this would diminish the receipts, during the present year, about two and a half millions of dollars; but if granted on the usual terms, would increase the receipts, next year, in a greater proportion, by the interest accruing, as well by the fuller collections which would probably be made in a greater number of cases. The opinion of the department on these various propositions is, that, considering merely our present financial necessities, no further postponement can be regarded as expedient, though in some other respects, as fully detailed in the recent letter from the Chamber of Commerce, the last delay mentioned might be found justifiable, and more beneficial. But if a law be passed extending credit on the bonds, it is supposed that, in any correct view of the subject, its provisions need not be continued in force beyond the period when the worst effects of the pressure will be likely to have ceased, and when all imports could, by a further extension of the ware-house system, be advantageously made payable in cash, at the time the goods are wanted for immediate consumption. The extension of that system is, thererore, respectfully recommended to the consideration of Congress, in connection with the present subject, as it might introduce as great an improvement in the collection of imposts, as the substitution of cash for credit did in the collection of revenue from the sales of public lands. It would certainly increase the security, ease, and promptitude of the operation; would dispense entirely with the trouble and risk in the payment of debentures; work favorably to the manufacturing interests; and at the same time, facilitate our trade in foreign articles, as well as exonerate the merchant from many embarrassments in regard to sureties and guarantees. III. OBSTACLES IN THE WAY OF TRANSFERRING THE Early legislation has likewise become necessary, either to withhold or postpone, for a reasonable period, the fourth instalment of deposites with the States, or to furnish such aid as may be necessary to complete them in a satisfactory manner. By the general suspension of specie payments, and the consequent necessity, under the deposite act, to discontinue most of the public depositories, the transfers from the banks in the west and southwest to the seaboard, which were necessary to place much of the money in a position to be conveniently lodged with the States in October, have, in several instances, been defeated. They had, as in case of the former instalments, been ordered seasonably, though, as a general rule, only where rendered proper, in consequence of great accumulation of public funds in an unfavorable situation, on account of the course of trade and exchanges, to be paid directly to the respective States. But, in the troubled condition of the money market, they had not been injuriously hastened as to the time of payment, and, consequently, falling due in the course of the summer and early in autumn, near two-thirds of the whole amount of these funds still on hand have been detained in the west and southwest, where they had so unusually augmented from the large sales of public lands. Hence, if the last deposite with the States was, in this position of the money, to be attempted, the orders directing it must, in many cases, be made on places remote, and very inconvenient to some of the receiving States, balance of of the unfavorable account trade, or the rates of exchange; and must be met, if at all, in a currency unacceptable and greatly depreciated. Transfers of portions of the July instalment could not, from the same cause, be effected in the precise mode intended, nor from the banks most desirable, though much of it had reached the appropriate points, to render the operation on Report of the Secretary of the Treasury. easy, before the suspension of specie payments. In But this request has not always been complied Another reason for withholding or postponing IV. DIFFICULTY IN PAYING THE APPROPRIATIONS, AND Some further obstacles exist in the way of dis- The effects which may be produced upon the accruing revenue, by granting or withholding further delays on bonds for duties, have already been explained. In addition to these, there is a likelihood, in the present pressure, that the payment of cash duties, to the extent of one million of dollars more than Sen. & H. of Reps. usual, will be unavoidably deferred to another year, as the importers under the existing laws are entitled to certain delays, by keeping in store the woollen goods which pay such duties. · This circumstance, in connection with the difficulty of collecting the bonds, whether longer postponed or not, will sensibly increase the embarrassments which have been specially pointed out, and otherwise exist in paying with promptitude and in a legal manner, the large appropriations chargeable upon the residue of the current year. Hence, after a considerable deficiency in the available means became highly probable, it was deemed expedient to adopt any judicious and lawul measure to remedy it, which was within he power of the department. Accordingly, though large quantities of public lands were still in market unsold, and though the receipts from this source during the year, would be higher than anticipated, in consequence, among other things, of a construction put on the pre-emption laws, admitting a large class of settlers to entries, it was supposed that some further tracts, in places much desired by the new States, might prudently be offered. A few such have been advertised; but sufficient time, after due notice, have not yet elapsed to realize any thing from them. If the fourth instalment of the deposites with the States be deferred, and the difficulty in seasonably transferring it be thus removed, yet, being chiefly in the custody of banks not paying specie, it is manifest that it cannot be immediately realized in funds suitable to meet the existing appropriations. If it be not deferred, some further provision will be still more indispensable to enable the Treasury not only to place it with the States, but to pay all the public creditors and officers in a satisfactory manner, until the duties now due from the merchants, and the funds now in the discontinued deposite banks, can be collected. It is true, that a resort to the States for refunding portions of the large sums already deposited with them, would also remain by law; but under the limitations of the act of June, 1836, it would be very slow in its operation, and, if complied with, would prove entirely insufficient to answer such an urgent occasion as the present. During the ensuing quarter, the whole amount that could be legally recalled would not exceed six hundred and fifty thousand dollars. Hence it seems expedient, either in aid or exclusion of a requisition on the States, as may be deemed most suitable by Congress, to provide some temporary resource until enough of the fourth instalment, or other means in the Treasury, can be rendered available to discharge all the public engagements. It need not be a loan, or an increase of taxes of any kind; as the General Government, in respect to its finances, whatever temporary embarrassment the recent convulsions in commerce and banking may have created, is far from having any just cause of despondency. It is neither overwhelmed with a national debt, nor destitute of large pecuniary resources on hand; but, entirely free from the former, it is so amply supplied with the latter as to have in the Treasury over forty millions of dollars, and eight or ten millions more in bonds, which will soon become payable. But a large portion being in deposite with the States, and the residue chiefly in banks and the hands of merchants, under the difficulties before named, in procuring promptly, and in a legal currency, the amounts of money which are needed, some collateral aid for a short period, till a sufficiency can be collected, appears to be judicious, if not indispensable. It is fortunate that the energies of the country generally are not paralyzed, nor its prospects clouded by any great physical calamities; and hence its immediate wants can, without doubt, be provided for in various ways. One mode would be to authorize the issue of Treasury notes, receivable for all public dues, but without interest. These would differ from the draft, or checks now in use, only as the latter are given for immediate payment, and drawn on persons and banks having public money sufficient to meet them; and, consequently, the holders must be exposed to the trouble and expense of presenting them at the places whero payable. Still they are nearly 25th CONG....1st SESS. on a par with specie. In the present deranged state of bank paper and exchanges, and in the favorable condition of the General Government, by its ample resources and exemption from pecuniary liabilities, to impart the greatest confidence in respect to the redemption of such notes, it is probable that they would readily be taken at par by most of the public creditors. Especially would this be likely to happen, provided they were issued in denominations as low as twenty, fifty, and one hundred dollars; and not in too large quantities, but used only in anticipation of the accruing revenue on occasional emergencies, and to a limited amount. Contrary to expectation, should the department, during the present delinquency of many of the public debtors, be exposed to such very large call, and collect so little revenue, as not to be able, by both the above notes and drafts, to meet all its engagements in a satisfactory manner, it would be desirable that the President should possess a contingent authority to cause Treasury notes to be issued, bearing an interest not to exeeed six per cent. Specie could always be raised on these for the public creditor, when he preferred it. But as notes bearing much interest would soon cease to be used in circulation, (and if they should not, would, as a currency, be troublesome in the computation of interest, and too strongly tend to exclude specie from the country,) it might be advisable not to make them receivable, at first, for any public dues, but only to resort to that measure afterwards, when it should be found convenient for redeeming them. In connection with the issue of any Treasury notes, it is believed to be wise to make ample pro vision for their early and final redemption. This could be accomplished by enacting, that when the money on hand in the Treasury and the Mint, available for public purposes, may exceed a given amount of four or five millions, it shall be the duty of the Secretary of the Treasury to cause these notes (securing priority to any on interest) to be redeemed to such an extent as the surplus may exceed that sum, and what will probably be needed to defray current expenses. It being believed that a reduction of the tariff, and suitable regulations concerning the sales of public land, ought at a proper time to be put in force, so as to prevent any large and regular accumulation in the Treasury, the department would respectfully propose that, in case of any unexpected excess beyond the sams above specified, it should merely be invested, in a temporary manner, in safe State stocks, at their market rate, subject to be sold again whenever the proceeds shall be wanted to discharge existing appropriations. An additional consideration in favor of these measures is, that since the payment of the public debt, which absorbed any occasional surplus of receipts, it is impossible, according to the views expressed in some previous reports from the undersigned, that, with sources of revenue so fluctuating as ours, and so dependent on commercial prosperity, any fiscal operations should be long continued with ease, vigor, and uniformity, without some such regulator as a power to issue and redeem Treasury notes, or to invest and sell the investment of surpluses. By any other course we shall constantly be exposed to great deficiencies, or excesses, with all their attendant embarrassments. If depositing the excesses with the States, subject to be recalled to supply deficiencies, the pecuniary profit to the whole Union will be no greater, while such a course may involve us in a series of vexatious demands on them, accompanied by various dangers, both to them and the General Government; and, in the mean time, it is feared will, in many instances, tend to excite excesses and evils similar to some of those under which the country is now suffering. V. ON THE SAPE-KEEPING OF THE PUBLIC MONEY HEREAFTER. The arrangements for keeping the public money, which had been in successful operation for a few previous to the passage of the deposite act years of 1836, became partially embarrassed by carrying into effect some of its provisions. But the enforcement of them all, where not entirely perfected, was in seasonable progress in May last, when the Report of the Secretary of the Treasury. Department was compelled by the act to give notice to such of the selected banks as had suspended specie payments that they could no longer be considered as general depositories of the public moneys. A list is annexed of all before employed in that capacity, which have been discontinued. After due inquiries to procure other depositories, in conformity to the act, the Department has completed the appointment of only one. This, and four more that have not suspended, with one that has resumed specie payments, (making six in all,) constitute the present bank depositories for general purposes. During the inability to obtain specie-paying banks at other points, the Treasurer, being required by the closing part of the 8th section of the act, to keep and disburse the public money according to the laws before in force, has done it in conformity to the very wide discretion which existed when no rules were in force, that had been prescribed by Congress, except to "keep" and "disburse the same" under the general superintendence of the Secretary of the Treasury. A part of it has, therefore, been kept in special deposite in this city, a portion of it in the mint, and the residue with the officers collecting it, until it was wanted for pub lic purposes, or until it accumulated in such sums at any point as not to be, probably, wanted there for such use. In the first case, it has, from time to time, been applied to the payment of creditors, by drafts on the receivers or collectors; and in the last, the excess has been directed to be temporarily placed with banks not remotely situated, and in special deposite for safety, until wanted for expenditure elsewhere, or until some new legislation shall take place in relation to it. Under these circumstances, the department would respectfully suggest some provisions which may be more specific, and may be required for the safe-keeping and disbursing of the public moneys. In the present condition of the Government and the country, two systems are proposed, either of which, it is believed, may be practicable and adequate to the exigencies of the crisis. One is, an enlargement and adaptation of the system partially employed since the suspension of specie payments, so as to make it answer all necessary purposes. This could be effected merely by assigning to our existing officers and establishments some additional duties The Treasurer, at the seat of Government; the Mint, with its branch at New Orleans, and another which has been contemplated, and is much needed, at New York, for other purposes; collectors of the customs, and receivers of money for the sales of land, as well as postmasters, might all be directed to keep in safety, not only the public money collected by them, but all actually placed in their possession, by transfer or otherwise. As fiscal agents, they might also be required to pay over and transfer it for such public purposes as may be authorized by Congress, and under such regulations as the Treasury Department from time to time may prescribe. Indeed, the third section of the post office law of 1825, with the bond taken under it as to the agency of the postmasters, is, perhaps, already sufficiently broad for that class of officers. At points like New York, and a few others, where a likelihood existed that the sums would permanently be large, but which, under a reduced revenue and expenditure, would seldom occur, authority might be given to appoint the clerks now acting as cashiers or tellers under the collectors and receivers, or other more suitable persons, to act as keepers and pay masters of the public money. But they should be made independent of the collectors and receivers, and placed under the like tenure of office, and under suitable bonds. Additional means of safety, and such additional but limited compensation to any of the above officers, might be provided, as the increased risk and labor might render just; but in only a few cases would these last be much augmented at any place. Taking the year 1834 as furnishing a specimen sufficiently large of the probable business in future connected with the general operations of the Treasury Department, but, of course, not including the separate establishment of the post office, the whole Sen. & H. of Rens. number of warrants issued in that year was a little under five thousand, and, though differing much in actual amount, averaging about $5,000 each. This would be less than twenty warrants a day, and hence would require less than one per day to be paid in each of the twenty-six States. They differed, in fact, from four per day in this District, and two per day in New York, which were the highest numbers, to only one per week in several of the States. The business at each office daily, or even weekly, in making payments of the drafts, would, therefore, be very little If more than one draft issued on a warrant, the business would be increased in that proportion, unless the whole payments were reduced, as is probable, hereafter, to sixteen or seventeen millions yearly. In regard to the risk, five millions in the Treasury at any one time, if all placed in the hands of collectors and receivers, would not, on an average, exceed $30,000 with each of the present number. But if the amount, besides one million in the Mint, was chiefly in the hands of half the present number, which would approach nearer to the probable result, the sum with each wonld still be less than most of the existing bonds of receivers; and when exceeding theirs, or those of the principal collectors, the excess, in most cases, could be readily prevented, or reduced, by being drawn out to pay creditors, or be conveniently transferred to the Treasurer of the United States, at the seat of Government, or to the Mint and its branches. Until one of the latter is authorized at New York, the substitute before mentioned, of one of the present officers in the customs there, as an independent keeper and paymaster of the public money, could be adopted, and, if deemed prudent, be extended to any other similar place. In this mode, the present number of officers connected with the collection and disbursement of the revenue throughout the United States need not be at all increased. Nor will it become necessary, except in a few cases, to augment their compensation. Twenty or thirty thousand dollars a year would probably cover the whole additional expense of every kind. The other system to which the attention and consideration of Congress are respectfully invited, is a new organization, by means of commissioners or receivers general, to gather the collections to more central points, and keep and disburse there a large portion of the public money, or such as could not be kept safely and expended conveniently in the hands of the collecting officers. Such an organization might be at only three or four of the most important points; or it might be made more extensive, and the number enlarged to eight or ten. This could be arranged, in all essential particulars, substantially in the manner which is now in very successful practice in some of the most enlightened and opulent Governments of Europe, and as was urgently recommended by this department as early as 1790. The only material difference need be, to pay out more of the money near the places where it is collected, rather than first to transmit most of it to the seat of Government. This organization of fiscal agents would be advantageous as a separate establishment for this business alone, and as an independent check on most of those collecting the revenue. But it would require some addition to the present number of officers, and in the first instance would more increase the public expenses. But the whole addition of principal officers need not exceed ten. Nor would the increased annual expense to the Government probably amount to over fifty or sixty thousand dollars, as the system would enable both the War and Navy Departments to dispense with several of their agents for making local disbursements The danger of any losses will be nearly the same under both plans. It is impossible to conduct the affairs of Government, or the ordinary transactions of society, without trust and risk of some kind. But one great object, wherever pecuniary confidence is reposed, should always be to require the best safeguards which ap pear reasonable; and in either of these systems, as hereafter explained, the amount trusted can be more easily kept from becoming excessive, and the hazard of losses, affecting the deposite agent by his lending or trading, be fully obviated, by the stret |