33D CONG....2D Sess. all these calamitous events are wholly attributable to the necessary and inevitable dangers of the sea. The merchants, mariners, and ship-builders of the United States are, it is true, unsurpassed in farreaching enterprise, skill, intelligence, and courage, by any others in the world. But with the increasing amount of our commercial tonnage in the aggregate, and the larger size and improved equipment of the ships now constructed, a deficiency in the supply of reliable seamen begins to be very seriously felt. The inconvenience may, perhaps, be met, in part, by due regulation for the introduction, into our merchant ships, of indented apprentices; which, while it would afford useful and eligible occupation to numerous young men, would have a tendency to raise the character of seamen as a class. And it is deserving of serious reflection whether it may not be desirable to revise the existing laws for the maintenance of discipline at sea, upon which the security of life and property on the ocean must to so great an extent depend. Although much attention has already been given by Congress to the proper construction and arrangement of steam-vessels and all passenger ships, still it is believed that the resources of science and mechanical skill in this direction have not been exhausted. No good reason exists for the marked distinction, which appears upon our statutes between the laws for protecting life and property at sea, and those for protecting them on land. In most of the States severe penalties are provided to punish conductors of trains, engineers, and others employed in the transportation of persons by railway or by steamboats on rivers. Why should not the same principle be applied to acts of insubordination, cowardice, or other misconduct on the part of masters and mariners, producing injury or death to passengers on the high seas, beyond the jurisdiction of any of the States, and where such delinquencies can be reached only by the power of Congress? The whole subject is earnestly commended to your consideration. The report of the Postmaster General, to which you are referred for many interesting details in relation to this important and rapidly extending branch of the public service, shows that the expenditure of the year ending June 30, 1854, including one hundred and thirty-three thousand four hundred and eighty-three dollars of balance due to foreign offices, amounted to eight million seven hundred and ten thousand nine hundred and seven dollars. The gross receipts during the same period amounted to six million nine hundred and fifty-five thousand five hundred and eighty-six dollars; exhibiting an expenditure over income of one million seven hundred and fifty-five thousand three hundred and twenty-one dollars, and a diminution of deficiency, as compared with the last year, of three hundred and sixty-one thousand seven hundred and fifty-six dollars. The increase of the revenue of the Department, for the year ending June 30, 1854, over the preceding year, was nine hundred and seventy thousand three hundred and ninety-nine dollars. No proportion ate increase, however, can be anticipated for the current year, in consequence of the act of Congress of June 23, 1854, providing for increased compensation to all postmasters. From these statements it is apparent that the Post Office Department, instead of defraying its expenses, according to the design at the time of its creation, is now, and under existing laws must continue to be, to no small extent, a charge upon the genera! Treasury. The cost of mail transportation, during the year ending June 30, 1854, exceeds the cost of the preceding year by four hundred and ninety-five thousand and seventy-four dollars. I again call your attention to the subject of mail transportation by ocean steamers, and commend the suggestions of the Postmaster General to your early attention. Message of the President. selected as swamp lands by States, and by locat- The commendable policy of the Government, SENATE & HO. OF REPS. struction of railroads, which, in extent, will equal, exclusive of the great Pacific road and all its branches, nearly one third of the entire length of such works, now completed, in the United States, and which cannot cost, with equipments, less than one hundred and fifty millions of dollars. The dangers likely to result from combinations of interests of this character, can hardly be over estimated. But, independently of these considerations, where is the accurate knowledge, the comprehensive intelligence, which shall discriminate between the relative claims of these twenty-eight proposed roads, in eleven States and one Territory? Where will you begin, and where end? If to enable these companies to execute their proposed works, it is necessary that the aid of the General Government be primarily given, the policy will present a problem so comprehensive in its bearings, and so important to our political and social well being, as to claim, in anticipation, the severest analysis. Entertaining these views, I recur with satisfaction to the experience and action of the last session of Congress, as furnishing assurance that the subject will not fail to elicit a careful reexamination and rigid scrutiny. It was my intention to present, on this occasion, some suggestions regarding internal improvements by the General Government, which want of time at the close of the last session prevented my submitting on the return to the House of Representatives, with objections, of the bill entitled, "An act making appropriations for the repair, preservation, and completion of certain public works heretofore commenced under authority of law;" but the space in this communication already occupied with other matter of immediate public exigency constrains me to reserve that subject for a special message, which will be transmitted to the two Houses of Congress at an early day. The judicial establishment of the United States requires modification, and certain reforms in the manner of conducting the legal business of the Government are also much needed; but as I have addressed you upon both of these subjects at length before, I have only to call your attention to the suggestions then made. My former recommendations, in relation to suitable provision for various objects of deep interest to the inhabitants of the District of Columbia, are renewed. Many of these objects partake largely of a national character, and are important, independently of their relation to the prosperity of the only considerable organized community in the Union, entirely unrepresented in Congress. The suggestions which I submitted in my annual message of last year, in reference to grants of land in aid of the construction of railways, were less full and explicit than the magnitude of the subject and subsequent developments would seem to render proper and desirable. Of the soundness of the principle then assert ed with regard to the limitation of the power of Congress, I entertain no doubt; but in its application it is not enough that the value of lands in a particular locality may be enhanced; that, in fact, a larger amount of money may probably be received, in a given time, for alternate sections, than could have been realized for all the sections, without the impulse and influence of the proposed improvements. A prudent proprietor looks beyond limited sections of his domain, beyond present results, to the ultimate effect which a particular line of policy is likely to produce upon all his possessions and interests. The Government, which is trustee, in this matter, for the people of the States, is bound to take the same wise and comprehensive view. Prior to and during the last session of Congress, upwards of thirty millions of acres of land were withdrawn from public sale with a view to applications for grants of this character pending before Congress. A careful review of the whole subject led me to direct that all such orders be abrogated, and the lands restored to market; and instructions were immediately given to that effect. The applica- || tions at the last session contemplated the construction of more than five thousand miles of road, and grants to the amount of nearly twenty millions of acres of the public domain. Even admitting the right on the part of Congress to be unquestionable, is it quite clear that the proposed grants would be productive of good, and not evil? The different projects are confined, for the present, to eleven States of this Union, and one Territory. The reasons assigned for the grants show that it is proposed to put the works speedily in process of construction. When we reflect, that since the commencement of the construction of railways in the United States, stimulated as they have been by the large dividends realized from the earlier works over the great thoroughfares, and between the most important points of commerce and population, encouraged by State legislation, and pressed forward by the amazing energy of private enterprise, only seventeen thousand miles have been completed in all the States in a quarter of a century; when we see the crippled condition of many works commenced and prosecuted upon what were deemed to be sound principles, and safe calculations; when we contemplate the enormous absorption of capital withdrawn from the ordinary channels of business, the extravagant rates of interest at this moment paid to continue operations, the bankruptcies not merely in money, but in character, and the inevitable effect upon finances generally;-can it be doubted that the tendency is to run to excess in this matter? Is it wise to aug-ligious faith with the most universal religious tolment this excess by encouraging hopes of sudden wealth expected to flow from magnificent schemes dependent upon the action of Congress? Does the spirit, which has produced such results, need to be stimulated or checked? Is it not the better rule to leave all these works to private enterprise, regulated, and, when expedient, aided, by the coöperation of States? If constructed by private capital, the stimulant and the check go together, and furnish a salutary restraint against speculative schemes and extravagance. But it is manifest that, with the most effective guards, there is danger of going too fast and too far. During the last fiscal year, eleven million seventy thousand nine hundred and thirty-five acres of the public lands have been surveyed, and eight|| million one hundred and ninety thousand and seventeen acres brought into market. The number of acres sold is seven million thirty-five thousand seven hundred and thirty-five, and the amount received therefor nine million two hundred and eighty-five thousand five hundred and thirty-three dollars. The aggregate amount of lands sold, We may well pause before a proposition con located under military scrip and land warrants,templating a simultaneous movement for the con I have thus presented suggestions on such subjects as appear to me to be of particular interest or importance, and therefore most worthy of consideration during the short remaining period allotted to the labors of the present Congress. Our forefathers of the thirteen United Colonies, in acquiring their independence, and in founding this Republic of the United States of America, have devolved upon us, their descendants, the greatest and the most noble trust ever committed to the hands of man, imposing upon all, and-especially such as the public will may have invested, for the time being, with political functions, the most sacred obligations. We have to maintain inviolate the great doctrine of the inherent right of popular self-government; to reconcile the largest liberty of the individual citizen, with complete security of the public order; to render cheerful obedience to the laws of the land, to unite in enforcing their execution, and to frown indignantly on all combinations to resist them; to harmonize a sincere and ardent devotion to the institutions of re eration; to preserve the rights of all by causing each to respect those of the other; to carry forward every social improvement to the uttermost limit of human perfectibility, by the free action of mind upon mind, not by the obtrusive intervention of misapplied force; to uphold the integrity and guard the limitations of our organic law; to preserve sacred from all touch of usurpation, as the very palladium of our political salvation, the reserved rights and powers of the several States and of the people; to cherish, with loyal fealty and devoted affection, this Union, as the only sure foundation on which the hopes of civil liberty rest; to administer government with vigilant integrity and rigid economy; to cultivate peace and friendship with foreign 33D CONG....2D SESS. nations, and to demand and exact equal justice from all, but to do wrong to none; to eschew intermeddling with the national policy and the domestic repose of other Governments, and to repel it from our own; never to shrink from war when the rights and the honor of the country call us to arms, but to cultivate in preference the arts of peace, seek enlargement of the rights of neutrality, and elevate and liberalize the intercourse of nations; and by such just and honorable means, and such only, whilst exalting the condition of the Republic, to assure to it the legitimate influence and the benign authority of a great example amongst all the powers of Christendom. Under the solemnity of these convictions, the blessing of Almighty God is earnestly invoked to attend upon your deliberations, and upon all the counsels and acts of the Government, to the end that, with common zeal and common efforts, we may, in humble submission to the Divine will, coöperate for the promotion of the supreme good of these United States. FRANKLIN PIERCE. WASHINGTON, December 4, 1854. Report of the Secretary of the Treasury. The expenditures of the first quarter, and the estimated expenditures for the remaining three quarters, are $64,345,921 21, leaving an estimated balance in the Treasury, on the 1st day of July, 1855, of $19,762,046 29. There is always, at the close of the fiscal year, a balance thus estimated, not expended, of at least $12,000,000. That $12,000,000 may be applied to the purchase of the public debt during the remaining three quarters, without disturbing the estimated balance in the Treasury. The amount of the public debt, outstanding on the 1st day of July, 1853, was... And on the 1st day of July, 1854.. $67,340,628 78 47,180,506 05 $20,160,122 73 The estimated receipts for the fiscal year ending June 30, 1856, are as follow: $4,649,384 98 7,726,677 13 Being a reduction of... .13,531,310 33 2,609,054 79 ...11,733,629 48 Redemption of public debt, interest and premium...... ..10,768,192 89 ..24,336,380 66 From customs........... .$56,000,000 00 From lands... ........... Miscellaneous.... $75,354,630 26 6,0:0,000 00 500,000 00 62,500,000 CO Add estimated balance in the Treasury, July 1, 1855...... 19,762,046 29 The actual expenditures of the first quarter of the fiscal year 1853 were $15,081,383 70, and the estimated expenditures for the remaining three quarters were $57,251,283 16, making for the actual expenditures of the first quarter, and the estimated expenditures for the other three quarters, $72,332,666 86; which would have left an estimated balance in the Treasury on the 1st of July, 1854, of $11,266,604 62. The actual receipts into the Treasury for the fiscal year ending 30th of June, 1854, were as follow: 1st quarter-from customs........................... from lands...................................................... Balance of former appropriations to be expended during the year..... $6,865,126 44 Permanent and indefinite ap propriations to be expended during the year..... Specific appropriations asked 8,285,716 14 for the service of the year.. 35,909,434 54 Making an aggregate of............... Leaving in the Treasury, on July 1, 1855, a ⚫ balance of......................... 51,060,277 12 .$15,206,327 50 The receipts of the first quarter of the fiscal year, ending September 30, 1854, have been as follow: From customs.. From lands.. Miscellaneous.. Total... .$18,639,798 45 2,731,654 12 149,850 28 $21,521,302 85 Leaving the sum of $21,392,212 92 on the 1st of July, 1856. Upon this estimate of the receipts and expenditures of the fiscal year 1856 there will be a balance in the Treasury, on the 1st of July, 1856, of $21,392,212 92, without expending anything in the redemption of the public debt; but if $12,000,000 shall be applied to the redemption of the public debt, which may be done, there will remain an estimated balance in the Treasury of $9,392,212 92. It appears the receipts from customs, for the second, third, and fourth quarters of the fiscal year 1854, were not diminished from the pressure in the money market and other causes, as expected in my former report. They were kept up from importations, growing out of large exports of provisions, caused by the scarcity in England and France, and the expected demands of the European war, and by the shipments to this country of The expenditures for the same first quarter have foreign manufacturers, which, owing to the want of been as follow: $73,549,705 20 Deficiency in the Post Office Department.. Balance in the Treasury 1st of July, 1853.. 21,942,892 56 Total sum for the service of the fiscal year ending June 30, 1854....... ..................................... $95,492,597 76 ........... Interest on the public debt............................... $15,066,931 13 2,719,464 00 3,133,655 25 13,628,350 90 11,258,095 71 2,370,093 60 $48,176,590 59 a remunerating market in those countries, sought the benefit of ours. They were also kept up by a greater uniformity and better valuation of foreign goods, and a diminution in smuggling, caused by increased vigilance on the part of the revenue officers. The foreign and internal immigration to the new States and Territories, combined with speculative investments in the public lands, greatly increased the receipts from that source; so that, instead of a reduced revenue, as anticipated, the receipts have been greater than in any previous year. It also appears from the statement of the receipts of the first quarter of the fiscal year 1854, that the receipts, both from customs and lands, have been greater for the quarter than a fair proportion of the estimated receipts for the year. This has grown out of the same causes that kept up the receipts from customs and lands, for the last three quarters of the fiscal year 1854, aided as to lands, to some extent, by the effect of the act graduating the price, which operated in favor of the receipts, for the latter half of the quarter. The receipts from customs for the remaining three quarters of the year cannot be in proportion to those of the first quarter, owing to the reciprocity treaty, introducing free trade with the British colonies, and the short crops in almost all portions of the country, which must materially affect the exportation of provisions and the return importations, and diminish the ability to purchase and pay for foreign goods. The effect of a scarcity of provisions, with consequent high prices, has 33D CONG....2D Sess. always been to diminish the consumption of other articles of customary use, and may be expected to operate on the importations for the remaining three quarters of the year, as it certainly will on the consumption. Moreover, the United States have enjoyed a long period of agricultural, manufacturing, and commercial prosperity, under extended bank and other credit facilities, backed by the immense production of gold, from the mines of California. This has led to large speculative investments in railroads, lands, lots, houses, ships, stocks, and other enterprises, and to enhanced prices for rents, labor, provisions, and all the necessaries of life. The bank and credit facilities have been in check for more than a year, with a prospect of a continued check; whilst the large and extended indebtedness of operators has to be met under receding prices, without the stimulating effect of new enterprises. This will also act in restraint of importations and consumption. In the estimated receipts from customs for the three remaining quarters of the current fiscal year, the effects of the reciprocity treaty and reduced importations have been considered; whilst, also, the same causes will operate in the sale of the public lands; but the effect of the act graduating the price has been considered sufficient to keep up the receipts from the latter source to what they were for the fiscal year 1854. The estimate of receipts for the fiscal year 1856 has been made from an expectation that the same causes which will operate to reduce the importations and consumption of foreign goods for the remaining three quarters of the fiscal year 1855 will be continued through a part of the succeeding year, and sensibly affect the importation and consumption of foreign goods. The accompanying table, 3, exhibits the particulars of the public debt on the 1st of July, 1853, and the accompanying table, 4, exhibits the particulars of the public debt on the 1st of July, 1854, to which is appended a table, exhibiting the interest paid on the public debt during the fiscal year 1854, and the principal, interest, and premium on the part redeemed within that year. Table 5 exhibits the principal, interest, and premium on the public debt, redeemed from the 1st July, 1854, to the 20th of November, 1854. From these tables it appears that the sum of $20,098,422 73 of the public debt was redeemed between the 1st of July, 1853, and the 1st of July, 1854, and that the interest and premium paid on the amount redeemed was $3,345,545 23; and the principal, interest, and premium on that part of the public debt redeemed between the 1st of July, 1854, and the 20th of November, 1854, was $2,604,203 51. The table, 6, which accompanies this report, exhibits the tonnage engaged in our foreign and coasting trade from the year 1789 to the 30th of June, 1854. It will be seen the increase for the last year has been 395,892 20 95 tons. The table, 7, which accompanies this report, exhibits our exports and imports for the same time; and the table, 8, which also accompanies this report, exhibits the sums received into the Treasury from customs, public lands, miscellaneous sources, including loans and Treasury notes, and the tariff, and particular price of the public lands under which the same was received; also the annual expenditures during the same period. From the table of exports and imports it appears the imports are $26,321,317 in excess of the exports, no account being taken of the precious metals brought in by emigrants. The profits on our exports, and the freights earned by our ships in foreign_trade, ought to more than cover this excess. The exports include over $38,000,000 of specie and bullion exported; but, whilst specie and bullion are products of labor in our mines, they rank with any other product, and must enter into our foreign trade as articles of commerce, and can have no prejudicial effect upon the great interests of the country. These tables combined, exhibit the growth of our commercial marine, of our exports and imports, and the receipts and expenditures of our Government, and prove that the receipts into the Treasury are sufficient to meet all reasonable expenditures, discharge the public debt, and allow a reduction of the rate of taxation, with almost a certainty that our increasing commerce will give an increase of revenue equal to the reasonable demands of the future. Report of the Secretary of the Treasury. Therefore, I feel it necessary, again, to call the attention of Congress to the propriety of reducing the revenue from customs, so that no more money shall be received into the Treasury than is required for an economical administration of the Government. The reduction proposed in my former report, as carried out by the bill prepared in this Department, and the reduction proposed in the bill prepared and reported by the Committee of Ways and Means of the House of Representatives, would each have effected the object of bringing the receipts from customs to the proposed revenue standard. The present tariff has eight schedules, or different rates of duties, as follow: The first of 100 per cent., the second of 40 per cent., the third of 30 per cent., the fourth of 25 per cent., the fifth of 20 per cent., the sixth of 15 per cent., the seventh of 10 per cent., and the eighth of 5 per cent. The bill prepared by the Committee of the House of Representatives has five schedules, as follow: The first of 100 per cent., the second of 20 per cent., the third of 15 per cent., the fourth of 10 per cent., and the fifth of 5 per cent. And the bill prepared at this Department, and which is substantially the one reported by the minority of the Committee of the House of Representatives, has but two rates of duty: The first of 100 per cent., and the second of 25 per cent. There are difficulties in the execution of the present tariff growing out of the required classification under the eight schedules; and these difficulties continue to increase by the acts of the manufacturers in assimilating one class of goods to another, and in ascertaining the material of chief value in the fabrics. The difficulties would be reduced under the bill of the committee, and would entirely disappear under that proposed by the Department. The bill of the committee, with the tables herewith annexed, exhibits the revenue from customs for the fiscal year ending June 30, 1853, and what has been the revenue under the present tariff for the average of six years, including 1853, and what would have been the receipts for the same periods under the bill of the committee, and under the one recommended by this Department. These tables only include the enumerated articles in the bill of the committee, leaving the sum of about $2,000,000 of revenue from unenumerated articles; but they are sufficient to explain the character of the present tariff, the one proposed by the committee, and the one by the Depart ment. Herewith is also presented exhibit 10, containing the free list proposed by this Department, to which is added the English tariff on the same articles; from which it will be seen that the English tariff makes most of these articles free; and, as far as these articles are used in the arts and manufactures, most of them are free of duty under the laws of other manufacturing nations. Under the English tariff, the raw materials used in the arts and manufactures have been made free of duty, whilst our tariff of 1846 imposes on those articles heavy duties; and thus, to the extent of the duty on the raw material, the English manufacturer has a decided advantage over manufacturers of the United States in the markets of other nations, whilst the effect of the tariff of 1846 is reduced in our own markets. In the revision of the tariff, for the purpose of reducing the revenue, it was deemed expedient and proper to take away the advantages accruing to the manufactures of other countries, under their free list, by making the same articles free under our laws, except as to the article of wool, and as to that article, on the coarser wools. Under the reciprocity treaty, wool from the British provinces will be admitted free of duty. In 1853, the importations of wool and woolen goods amounted to over $30,000,000, and the wool and the value of the wool in the manufactured article, amounted to at least $10,000,000. This was over and above the amount produced in the country, and affords satisfactory evidence that sufficient wool is not produced in the country for its consumption. The consumption of wool in the United States for the year 1853, is estimated at 200,000,000 pounds, of which 60,000,000 is the production of the country, and 21,000,000 imported as wool, and the balance of 119,000,000 imported in manufactures of wool. The proposed addition of articles of general SENATE & HO. OF REPS. consumption to the free list, such as salt, &c., was deemed more questionable, but was made because it seemed to have had the sanction of Congress and the people as to tea and coffee, and it was thought would leave the operation of the tariff laws more equitable in their bearing upon all sections of the country, than a general reduction on all articles. The addition of unadulterated wines was made to promote our commercial intercourse with wine-producing countries. The present tariff, the bill of the Committee of the House of Representatives, and that of this Department, impose the like duty of 100 per cent. on spirits imported. The bill of the committee reduces the schedules of the present tariff from 40, 30, and 25 per cent. to 20 per cent., retaining the 15, 10, and 5 per cent. schedules, with some transposition of articles from one schedule to another; whilst that of the Department imposes a duty of 25 per cent. on all articles not made free; most of the articles in the 15, 10, and 5 per cent. schedules of the present tariff having been added to the free list, there being no just reason why the articles not added to the free list should not pay the higher rate of 25 per cent. The table, 11, which accompanies this report, exhibits the amount that would have been collected for the year 1853 under the present tariff, the bill of the committee, and that of the Department, and what would have been collected under each schedule of the bill of the committee, and affords evidence that the 5th schedule will not pay the expenses of collection. Indeed, it is believed the advantages of these schedules will be counterbalanced by the increased difficulties and expense of collection. Whether the general rate should be 20 or 25 per cent., is a question of some doubt. It was thought that a reduction to 20 per cent. might have the effect of increasing the revenue by increasing the importations; whilst the duty of 25 per cent. would not probably have that effect. A question of greater difficulty was, whether the rate of 40 per cent. should not be retained on manufactured and adulterated wines, and whether silks and some other sumptuary_articles should not be added to that schedule. Upon mature reflection, I am fully satisfied that the schedule of 40 per cent. should have been retained, keeping in it wines not made free, and adding to it silks of all kinds, laces of all kinds, millinery of all kinds, and other sumptuary articles; and I now recommend that, in revising the tariff, such a schedule, specifying the articles, be added. The table, 12, which accompanies this report, exhibits the articles manfactured in the United States, which have formed a part of our exports, for the years 1846, 1847, 1848, 1849, 1850, 1851, 1852, 1853, and 1854. It will be seen from this table that there has been a great increase in the annual export of articles manufactured in this country. It may be fairly calculated that the $26,000,000, and upwards, of manufactured articles exported during the fiscal year 1854 will continue gradually to increase until the manufactures of the United States shall constitute a fair proportion of our foreign exports. In recognizing, as I do, the principle that duties should be levied for revenue, and not for protection, I have considered it no departure from the principle to counteract the legislation of other countries, and make the same articles free under our laws that are free under theirs; knowing, also, that there never has been a tariff law enacted, under the Constitution, in which some articles were not allowed to be imported free of duty. The table, 13, which accompanies this report, exhibits duties to the amount of $1,524,457 40 on the articles made free by the reciprocity treaty with Great Britain during the fiscal year 1854; to which extent the annual revenue from customs will thereby be reduced. In my former report a repeal of the fishing bounties was recommended, for the reasons there referred to. That recommendation is renewed, and the subject of drawback duties on refined sugar is recommended to the consideration of Congress. The same principle would require like drawbacks on all exported articles on which there is a duty on the raw material used in their manufacture. The reports of the First, Second, Third, Fourth, Fifth, and Sixth Auditors, and of the First and 33D CONG....2D SESS. Second Comptrollers, and the Commissioner of Customs, which accompany this report, numbered from 14 to 22, inclusive, exhibit a fair statement of the operations and condition of their respective offices. They are all in good order, and the current business is promptly, and, it is believed, correctly done; and, besides, considerable progress has been made in closing the large unsettled balances that stood open on the books of the Treasury, as stated in my former report. That report stated the outstanding balance on the 1st of April, 1853, at. .$132,521,704 09 And there had been settled, up to the date of that report.... Leaving.... ....... Since the date of that report, this sum has been reduced by settlements, collections, &c., as follows: In the office of the First and Fifth Auditors, per report of the First Comptroller of the Treas.$65,237,291 47 ury..... Corrections in the In the office of the Solicitor of the Treasury...... 400,715 64 351,235 50 30,500,154 50 $102,021,549 59 74,438,400 97 Leaving yet unclosed...... $27,583,148 62 The reports of the First and Second Comptrollers, and of the Commissioner of Customs, upon the subject of these balances, numbered 23, 24, and 25, and which accompany this report, give reason to hope that in another year they will be still further reduced, and a stricter system of accounting enforced. The force in the office of the Sixth Auditor and First Comptroller is inadequate to the increased business in the former, and the increased business and arrearages in the latter; and it was not possible to give the required additional force by transfers from other offices, owing, in part, to the curtailment of five clerks in the Third Auditor's office, one in the Second Auditor's office, and one in the Second Comptroller's, from the failure to estimate for them, and from Congress only granting eleven of the twenty-one clerks recommended by the Department. The attention of Congress is called to the report of the Sixth Auditor and the First Comptroller, as to the necessity for additional force in their respective offices. It is recommended that Congress allow five additional clerks and two aaditional messengers to the Sixth Auditor, and two additional clerks to the First Comptroller. The attention of Congress is also called to the report of the Sixth Auditor, as to the necessity of additional room for the accommodation of the clerks of his office, and the safety of the accumulating papers and records, with a recommendation that Congress make provision for the same. It would facilitate the business, and render less complicated the accounts of the Department, should all the accounts of the Interior Department be given to the Second Auditor, and all the accounts of the War Department be given to the Third Auditor, as recommended in my former report. The attention of Congress is called to the fact that the Commissioner of the General Land Office and his clerks still occupy a portion of the Treasury Building, and that the First and Fifth Auditors and their clerks, and part of the clerks of the Third Auditor, have to be accommodated in rented Report of the Secretary of the Treasury. buildings, apart from the Treasury Building; also, that the clerical force in the building cannot be accommodated in suitable connection. Under the expectation that the Land Office will be removed in the course of next spring, an estimate has been submitted for the expense of affording additional light and ventilation to the Treasury Building, so that the rooms will be more convenient and comfortable, and the necessary appropriation for that purpose is recommended. The system of monthly accounts from the collectors of customs, and the settlement thereof, within the succeeding month, at the Treasury, has been adhered to and fully carried out, with a few exceptions upon the Pacific; and the accounts are being rendered and settled with great dispatch. The benefits growing out of this system to the public, and the officers of the revenue, is more manifest the longer it is enforced. The Department has caused the collector's offices in all the ports to be examined within the year, with but few exceptions, by agents of the Department, in order to ascertain how their books and accounts were kept, and, by personal inspection, how the official corps discharged their duties. These examinations have enabled this Department to correct errors and omissions, and to see that the official corps devote themselves, in person, to the duties confided to them, and have resulted in securing greater vigilance, and a more faithful application of the revenue laws. The report of the Register of the Treasury (No. 26) also accompanies this. It exhibits a greatly improved condition of his office. The annual report on commerce and navigation is in advance of any former one, and will be in print for the use of Congress at the commencement of its labors. The business of the office has been promptly and well done. The Solicitor of the Treasury has caused to be made out a schedule (No. 27) of all the lots and lands purchased under execution and decrees for the United States, or otherwise taken for debts due to the United States, and which have heretofore been sold, and also a schedule of all such lands as are now held by the United States. They are submitted, in order that Congress may have in view the sales heretofore made, and devise some suitable mode for the future sale of the property on hand, and such as may hereafter be acquired; also for closing or crediting on the books of the Treasury such debts as have been, or shall be, discharged in whole or in part by the purchase of real estate; because, after accounts have been stated at the Treasury, leaving a balance due to the United States, they are passed to the Register, and appear on his books, and then to the Solicitor, and appear on his books, and are then sent to the proper district attorney for suit. When the debt is collected and paid into the Treasury, in whole or in part, the amount so paid is entered on the books of the Auditor, where the account was first stated, and then on the books of the Comptroller, and then on the books of the Register; but where lands or any other thing is purchased under execution for the debt in whole or in part, no entry thereof is made on the books of the Auditor, Comptroller, and Register, until a resale is made and the money is paid into the Treasury; and when the United States fail, in whole or in part, in the courts, no entry is made on the books of the Auditor, Comptroller, and Register. Thus, the books of the Treasury exhibit balances due the United States after the same are discharged. This might be remedied by a Treasury regulation, causing the proper entries to be made on the books of the Auditor, Comptroller, and Register, and opening in each office an account of the lands, &c., purchased for the United States on each debt, and for the discrepancies between the Treasury statements of indebtedness and the judgment in the particular case; but it had better be regulated by Congress. This correction of the books would be a work taking considerable time and labor, as it would require to overhaul the books from the commencement of the Government. Yet no just statement of the condition of the balances on the books of the Treasury can be made until it is done. The report of the Solicitor of the Treasury (No. 28) also accompanies this report, and exhibits the operations of that office, and the atten SENATE & HO. OF REPS. tion given to the trial of suits, and the collection of money upon judgments in favor of the United States, with suggestions as to the propriety of amending the law, so as to authorize a commission to district attorneys for the collection of old judgments, and the propriety of authorizing the Department to make compromises and settlements. 'The attention of Congress is called to the subject, with a recommendation that the Department be authorized to allow district attorneys and others, employed for that purpose, a commission not exceeding ten per cent. on the amount collected. The report of the Treasurer of the United States (No. 29) also accompanies this. The business in the office of the Treasurer has been promptly and satisfactorily performed. The money, both of the United States and the disbursing agents of the Government, deposited, has been safely kept. One additional clerk for the Treasurer's office is recommended, for the reason stated by the Treasurer in his report. Under the eleventh section of the independent treasury law, it was thought advisable to have the offices of the assistant treasurers, and the depositaries of the United States, examined by an agent of the Department, and Mr. William M. Gouge was appointed to examine all of them, except that of San Francisco, California. His letter of appointment, No. 30, accompanies this report, as also his general report upon the condition and operation of the offices used as depositaries of the public money, and by the disbursing agents of the Government, exhibiting a highly satisfactory condition of said offices, the keeping the books and the public money, and the duties of the respective officers. He will be required to examine the southern offices not heretofore examined by him. The assistant treasurer's office at San Francisco has been examined by J. Ross Browne, another agent of the Department, and that office found in good condition, and the business promptly and satisfactorily performed. The table, 31, which accompanies this report, exhibits the imports and exports of coin from the 30th day of September, 1821, to the 30th day of June, 1854; and the table, 32, which accompanies this report, exhibits the coinage at the United States Mint from the year 1792 to the 30th day of September, 1854; and the table, 33, which also accompanies this report, exhibits the coinage of the United States Mint and branches, from our own mines, from the year 1804 to the 30th day of September, 1854. Under the act of 1853 there has been $16,152,170 of silver coined at the Mint in Philadelphia and branch Mint at New Orleans, and circulated at Philadelphia, New York, Boston, Detroit, Chicago, Baltimore, Washington, Richmond, Norfolk, Charleston, Savannah, New Orleans, St. Louis, Jeffersonville, Cincinnati, San Francisco, and Pittsburg; and furnished to citizens at various other places. This has tended to keep a sound currency for change in circulation, and afforded great convenience to the public; but the circulation of large amounts of small bank notes has contracted the benefits of the silver change in many places, or driven it away, or tied it up in the pockets of the people. The full benefit of silver coinage for change can never be realized whilst small bank notes are encouraged under bank charters, and made current by the patronage of the community. These tables give some data from which an estimate may be made of the increasing amount of gold and silver coin retained in the country. The table, 34, with the remarks annexed, which accompany this report, exhibits estimates made by Secretaries of the Treasury and others, of the amount of gold and silver coin in the country at different periods, and gives the amount on the 30th of September, 1854, at $241,000,000, which is believed not to be a high estimate. Of this sum there was about $60,000,000 in the banks, and $26,000,000 in the United States Treasury; the rest being in circulation amongst the people, or hoarded up. It appears from the report on the banks from this Department, submitted to Congress on the 6th of May, 1854, that in 1850-'51 there were 879 banks in the United States, with a capital of $227,807,533, and in 1853-'54 there were 1,208 banks, with a capital of $301,756,071, being an 33D CONG....2d Sess. increase of $73,948,538. In 1850-'51 the circulation of the 879 banks was $155,165,251, deposits $128,957,712, due to other banks $46,411,928, and together $330,539,891; and in 1853-54 the circulation of the 1,208 banks was $204,689,207, the deposits $188,188,744, and there was due to other banks $50,322,162, and together $443,200,113, making an increase of $112,660,222, with specie in their vaults in 1850-'51 of $48,671,048, and in 1853-54 of $59,410,253, being an increase of $10,739,205. These tables exhibit a bank circulation of $204,689,209, against the $241,000,000 of gold and silver in the country. The independent treasury of the United States, receiving and paying for the fiscal year 1854 more than $75,000,000 in the current coin, has kept up the demand for it, and prevented the large bank circulation from obtaining the mastery, and driving the constitutional currency from the country. In our table of exports we find an increase in the export of coin over the previous year, but not exceeding the produce of our mines. This increase may be, in part, accounted for by the large redemption of the public debt held abroad, and the bank circulation, a large part of which was in small notes circulated at a discount in places remote from the issuing bank, and forcing the better currency of gold and silver out of the market. The United States having placed her receipts and expenditures upon the constitutional currency of gold and silver, it is in the power of the States, by prohibiting the banks from issuing and circulating notes of a small denomination, and by making the constitutional currency the basis of their own receipts and expenditures, to give the victory in all times to the constitutional currency, keep a sufficiency in the country for all the purposes of a circulating medium, and prevent the evils and losses that always attend an inferior currency. The disorder now felt in money matters grows out of the failure of many of these banks, and the curtailment of the circulation and discounts of others-which in the last six months must have reached forty or fifty millions of dollars; and in part out of the effects produced by the large imports, and in part out of the want of confidence between lender and borrower. It cannot be attributed to the shipment of gold and silver, which is nothing but a consequence growing out of these causes. The Report of the Secretary of the Treasury. with the law, both in respect to the deposit and use of the public money; and does not give the United States the benefit of promptly obtaining the amount not disbursed, upon the removal, resignation, or death of the incumbent. The work on the Coast Survey continues to make good progress, and the means appear to have been carefully and economically used. If the work shall have the continued support of Congress for a few years more, the fullest and most reliable knowledge will be obtained of our extensive coast, and of all our harbors, to the great advantage of our navigation and commerce. The work is recommended to the consideration of Congress, with the belief that no more convenient time will be found for its continuance and completion, nor a more able corps of officers to which it can be confided. The report of the Light-House Board, No. 37, also accompanies this report, and is referred to for the detailed operations for the past year. The business has been promptly and faithfully attended to in all its branches, and the system made as efficient as the time and means would allow; and it is recommended to the continued favor of Congress, in order that increased facilities may be given to navigation in all its branches and connections. Under the appropriation of $20,000 for continuing the system of protecting human life from shipwreck on the New Jersey coast, and $20,000 appropriated without specification, (which the Department has thought advisable to expend on the coast of Long Island,) Mr. S. C. Dunham was appointed for the New Jersey coast, and Mr. J. N. Schellinger for the Long Island coast, with instructions to examine existing stations, and report what would be needed to put them in a perfect state, and to select intermediate stations, so as to make the stations on each coast five, instead of ten, miles apart. Both these agents have reported, and are now employed in building the houses at the new stations, and providing the articles required for them and the old ones, and the additional boats have been built, and are being shipped to the new stations. Under the appropriation of $12,500 for locating boats at different points on Lake Michigan, twenty-three boats have been purchased and sent to the places indicated in the act. Boats for the two remaining points will be purchased and sent so soon as persons can be found to take the proper care of them, for which purpose the necessary inquiries are now being instituted. The late melancholy disaster to the ship New Era has shown the inadequacy of the mortars heretofore used for throwing lines to vessels in distress, and establishing a communication between the wreck and the shore. Experiments are now being made, with a view of providing a mortar, mounted, and capable of throwing a ball and line the requisite distance. The appropriations will not be sufficient to place all the stations in an entirely effective condition. The independent treasury has been administered in strict accordance with the provisions of the law, in all respects, as stated in my former report. There has been found no difficulty in its operation, nor in complying with any of the provisions of the law. The opening the Treasurer's office at Washington, and the offices of the several assistant treasurers and public depositaries, as places of deposit for the disbursing agents of the Government, has been attended with signal success, and resulted in great advantage to the Executive Departments and the disbursing agents. table, 35, which accompanies this report, shows the growth of the deposit system; the number of disbursing agents who deposit, with the places The report, No. 38, from Captain A. H. Bowand amount of deposit at different periods. It man, of the Engineer Corps, in charge of the conwill be seen that in September these deposits ex- struction of custom-houses, marine hospitals, &c., ceeded $3,500,000; whilst all disbursing agents which accompanies this, gives information in who could, have not availed themselves of the detail of all that has been done towards the comprivilege, and many disbursing agents could not pletion of those under the direction of this Departdo so, because there were not depositaries con- ment since the date of my last report, and of the venient to their location. The returns of these working of the system of operations, and affords deposits furnish the means of ascertaining the all necessary information upon that subject. operations of disbursing agents, and whether the The attention of Congress is particularly called funds are kept in readiness to meet the appropri- to that part of the report which relates to the ations; whilst, upon the removal, resignation, or custom-house being built at New Orleans. It death of a disbursing agent, the amount on de- satisfactorily appears that the foundation is not posit passes at once into the United States Treas-sufficient for the weight and character of the superury and to the credit of the depositor, without the procrastination caused by having to await a settlement by the agent or an administration; and can at once be applied to the purposes of the appropriation through another agent. The money thus on deposit is as safe and secure as that in the Treasury, and is without risk to the depositor; and it is right the Government, and not the disbursing agent, should be at the expense and risk of keeping the public money until actually disbursed. It is to be regretted that all disbursing agents conveniently situated have not availed themselves of the right to deposit, because it furnishes cause of mistrust as to a strict compliance structure, as specified in the plan, according to which Congress has directed it to be built; and that there is urgent necessity to modify the plan and remedy the evil as far as practicable, and a modification of the plan as indicated by Captain Bowman is recommended. The attention of Congress is also called to the report of Captain Bowman upon the site for a custom-house at Detroit; and it is recommended, for the reasons stated by him, that authority be given to sell the present lot, and purchase a more suitable one. The Department has selected sites for the custom houses at New Haven, Connecticut; Burling-l SENATE & HO. OF REPS. ton, Vermont; Oswego, New York; Toledo and Sandusky, Ohio; Chicago, Illinois; Milwaukie, Wisconsin; and Wheeling, Virginia, in accordance with the report of Captain Bowman, No. 39, accompanying this, he having been sent to examine the sites offered in the several cities, and confer with the commissioners and others upon the subject; and steps are being taken to obtain the titles, with a view to early action in having the buildings constructed. The table, No. 40, exhibits the sites and prices agreed to be paid in the several cities. No report was made on the site at Buffalo, New York; Cincinnati, Ohio; and Burlington, Iowa, for the reasons stated in the same report. There has not been time for information from New Orleans since instructions were issued to obtain offers for a site for the marine hospital there. The Department having learned of an embezzlement of bullion by one of the officers in the Mint at Philadelphia, determined to have the Mint and course of business investigated, and a detailed report made with a view to the better security of its operations. Messrs. Richard Smith and J. C. Pickett were appointed for that purpose. A copy of the letter of appointment (No. 41) and their report accompany this, with a copy of the new regulations which the director of the Mint has adopted, with the sanction of this Department, for the government of the Mint and branches. They are submitted to Congress for such additional legislation as the circumstances seem to require. The condition of the Mint at Philadelphia, as to safety as a depository and security from fire, was examined by Captain Bowman, under the direc. tions of this Department. His report (No. 42) accompanies this, and states the necessity of giving the same greater security as a Mint and depository, and of its being made fire-proof; and estimates are submitted for the alterations, and also for improving the vaults of the Treasury Building at Washington. In Captain Bowman's general report it is stated that the appropriation for the repairs of the branch Mint at New Orleans is not sufficient to make it thoroughly fire-proof and secure as a Mint and depository, and estimates are submitted for that pupose. The attention of Congress is called to the condition of the Mint at⚫ Philadelphia and the branch Mint at New Orleans, and of the vaults in the Treasury, and such appropriations recommended as will make them fireproof and perfectly safe. The propriety of an annual appropriation, for keeping in repair the vaults and safes for the assistant treasurers and depositories, is submitted. The table, 43, which accompanies this report, exhibits fifty-four places, including the marine hospitals, where relief is afforded to sick and disabled seamen, under the direction of this Department, with the average cost per day of each patient at the several places. It appears the average cost is fair and reasonable at most of the places, but at others it greatly exceeds what it should be. Every effort has been made to bring the cost within fair and reasonable limits, but the greatest discrepancies are found in those places where there are but few patients to accommodate, and where it has been found impossible to reduce the items constituting the largest average in the expense, such as compensation of surgeons, &c. The report of the supervising inspectors of steamboats, under the act of 30th August, 1852, No. 44, accompanies this report, as also a letter from Mr. William M. Gouge, charged by this Department with the duty of attending the meetings. The Department also procured Professor Booth, melter and refiner at the Mint in Philadelphia, to experiment upon fusible alloys, in connection with Evan's safety valves, and otherwise, with a view of testing the same, and in order to have reliable alloys should it be determined to continue their use. His report, No. 45, also accompanies this, and gives valuable information upon the subject. The attention of Congress is called to the suggestions in the report of the supervisors, the letter of Mr. Gouge, and the report of Professor Booth. The Department has been furnished with the table, 46, which accompanies this report, showing the loss of sixty-three steamvessels from the 1st of January, 1854, to June of the same year, with the causes thereof. This |