The Sun. — London, England, 1869-12-24 00:00:00

THE TOIVEI. GIEM lh these Clays (writes the Tall Mall Gaelli) illusions left, not even ghosts. A correspondent sends n 3 an explanation of the spectral axe at the Tower, which is, we are sorry to say, shockingly simple and prosaic. There is, it seems, in one of the towers of that fortress a peculiar old loophole, somewhat resembling in shape the capital letter T with the arms shortened ; this loophole is in the walls of a closet, outside which there is another wall. When the outer wall is in shadow, and the gas lighted in the closet, a light is thrown on to the outer wall through the loophole, which from its peculiar shape makes the thrown light bear a resemblance to a battle-axe. THE IRISH ROMANIST BISHOPS AT THE VATICAN. The Linzerick, Reporter publishes some special notes rrom Rome touching the relations of the Irish bishops to the Council. A letter on Fenianism by Father Lavelle has (it says) just reached Rome, " and created a very unpleasant feeling." This was a letter in whi h Mr. Lavelle maintained that the Fenians had never been formally condemned by the Holy See. It (the letter) has been translated into Italian, and placed before the Prefect of the Fro' aganda for the consi deration of the congregation over which his Eminence (Cardinal Barnabo) presides. The Irish bishops feel sore (the Reporter continues) that an Irish priest should give the lie direct, espcially on a subject on which the Cardinal, above all other men, is admitted to be in a posi tion to speak with authority, as to the doctrine of the Church, of whom he is so distinguished and illustrious a light." The same journal mentions that "his Grace the Archbishop of Cashel and his lordship the Bishop of Galway have been elected by the General Council members of the most important congregation, namely, the Congrega tion on Dogma. The congregation consists of twenty-four members; it was elected by ballot by the whole council, and among those on whom the choice of the council fell were the distinguished prelates already named, and also his Grace the Archbishop of Westminster, and his Grace the Archbishop of Baltimore, who is Primate of the United States of America." COUNT BISMARCK BUYING PAPERS. The Moscow Gazette and the North German Gazette, Count Bismarck's organ, are engaged in a very hot dispute. The former paper alleged that Count Bismarck had endea voured to buy its support, and the latter expressed its surprise that forged documents were not published to prove the case. To this the Moscow Gazette replies in the number just received that there is no need of forged docu mrnts in this case. " The evidence we can bring forward cannot be forged, for it is that of a living man, General Schweintz, Into Prussian military agent at St. Petersburg, and now Ambassador at Vienna. . . . Some months rt:, , o he addressed us through our friends at St. Petersburg on the part of a person who had given him full powers in this matter, with a proposal that we should publish in on journal articles sent from Berlin. He was told in reply that it would be useless to make such a proposal to us, as it certainly would not be accepted. Some time after the necessary interval having elapsed for communicating with the person who had given full powers to the General, a new proposal was made to us. One good turn deserves another. We were informed that if we would insert articles from B3rlin in our paper, any communications we might desire to appear in the foreign press would be inserted in all the German papers controlled by Count Bismarck. This pro p)sal was also rejected." MR. HENRY WARD BEECHER'S DEFENCE. Mr. Henry Ward Beecher has found it necessary to I defend himself before his congregation at Plymouth Cixurch, New York. It will be remembered that Mr. Albert Richardson, of the New York Tribune, was shot a little while ago by a man named M`Farland. Jealousy was the cause of this crime. Richardson had been living with a woman whom MTarland claimed as his wife, though the woman herself said she had obtained a legal divorce. Richardson died of the wound, but Mr. Henry Ward Beecher married him on his death-bed to Mrs. M'Farland. In explanation of this act, Mr. Beecher said he had been asked to perform the marriage by a lady, who guaranteed the respectability of Mrs. M`Farland. He h td never seen Mr. Richardson until the night of that marriage. On that evening he had been spending two or three hours with Father Hyacinthe at Mr. Frothingham's house, and while there he was called to the Astor House. There he found a corridor full of friends and a weeping group around the bed. The surgeon told him Mr. Richardson was under the influence of opiates, and that after their effect was over he would gradually sink and die. Mr. Frothingham, at whose church Mr. Richard son was an occasional attendant and went there whenever he was in the city, was present. Mr. Frothingham offered up the prayer, and he (Mr. Beecher) performed the ceremony, and in doing so simply acted as magistrate—not in the 33mi-orthodox fashion of a magistrate and minister merged into one office. When two parties came to him for mar riage he could not summon witnesses, he could not act as judge, but simply confine himself to that which was purely magisterial. If the parties were of a legal age for marriage, and presented themselves before him and required him to marry them, his duty in that regard was simply a magisterial one, and he was bound to fulfil it. He had looked through the civil code of the State, and he had been unable to dis cover any definition of the duties of a minister in respect to marriage. It seemed to him that there was no defined law about it in the revised code. His idea of a minister was not a man who never had a spot on his collar, a spot on his cuffs, or upon his bosom. He expected to come out of this fight muddy and spotted. H 3 thought he had a heart like his Great Master, and feel ing like that he had not felt guilty in what he had done. Knowing what he had done,the question he now askedhim self was, would he do it again? In answer to that, ns the Dutchman once said, " If my fore.ight was as good as my hindsight I should do a great many things better than I do." Mr. Beecher then said he did not wish his Church to apologise for their pater as having done a wrong thing. If they did not agree with him in this matter let them rise and say so. Several did say so, but (the reporter says) amid it all, however, there seemed to be a general feeling and expression of forgiveness. LAW AND POLICE. RAILWAY COMPENSATION CASES, —Several actions to obtain compensation for injuries received in railway acci dents have come before the law courts. In the Curt of Exchequer a music teacher and his wife, named Lomax, were awarded £1,300 damages for injuries received by the female plaintiff on the Metropolitan Railway. In the Sheriff's Court seven actions in which judgment had been suffered to go by default were heard in one day, all arising out of the New-cross Railway accident. In most cf the cues the jury awarded small sums, but a plain tiff, named Wilson, laid Ma damages at £1,500. He had been a drayman for more than twenty years in the service of Barclay and Perkins, and was severely injured by the collision which produced concussion of the brain. He had drunk a half-pint of gin a day besides beer, and it was suggested that the drink ho bad taken had pre disposed him to nervousness. The jury, however, awarded him £BOO. ALLEGED FRAUD ON AN INSURANCE COMPANY.—A case of alleged fraud on the Scottish Insurance Company has been tried at the Liverpool Assizes, two days having been occupied in the investigation. A clothier and jeweller, named Fry, sued the company upon a policy of insurance for £7OO effected on his furniture and stock. The defendants pleaded that the claim was fraudulent, and that the fire occurred by the plaintiff's connivance; also, that he had included property which had not been destroyed. It was stated that the plaintiff bad not kept any books by which the inquiry could be assisted. The witnesses for the defence consisted chiefly of policemen and firemen who witnessed the fire. None of them agreed as to the exact length of time the fire lasted, but they all thought it could not have burned beyond twenty minutes. They could not account for the fire occurring. The jury found a verdict for the defendants, on the ground that the plaintiff had sent in a fraudulent claim. The llarvard crew have published a statement in the New York papers disclaiming some of the a: elegies that have been put forth in their behalf We wish to say that we received the bast of treatment from the English people, and were fairly beaten in the race. The only member of the crew who does not sign this peper, Mr. Simmons, is in Europe, and we have not had time to procure his signature." Deaths of little children, through wrong mediciLee got from druggists being :riven them, are constantly recur ring. Two have joet taken place in Laucashire. At Wigan a mother gave her chll.l more gamboge than should ly given ordinarily to a grown .up person. At Warrington a mother administered a whole botrie instead of twelve dn.} , of a liquid. In both cases the children died. Nature announces that the Gold Medal of tilt Royal Astronomical Society has been this year awarded to M. Delaunay, the eminent mathcruat'cian and astronomer. —The question of meteorological standards is now occupying the attention of the Royal Society Council. —The Professorship of Botany in the Royal College of Science, Dublin, is now vacant, Professor Wyville Thom son's resignation having been accepted by the Science sad tat NitArtaleat, 4 METROPOLITAN GOSSIP—Dc. 23. The repo which has appeared in a Conservative paper of one of the principal cities of the kingdom, that Lord Derby has definitely declined to take the leadership of the Conservative party in the House of Lords, and will hold himself aloof from politics for a time, is entirely incorrect. Lord Derby, I can state positively, has not declined. The matter is still under his consideration, and, though I cannot say more than this, I may mention that your readers need not be surprised if hereafter he should accept the post which a very large portion of his own party are anxious that he shouldoccupy. Such bring the state of the negotiation the further report that either the Duke of Marlborough, the Duke of Abercorn, or the Duke of Richmond will take the leadership, falls to the around. Of other political news there is almost none. Ministers have dispersed again to enjoy their well-earned Christ mas holiday, and, unless the Fenians should attempt any fresh madness, of which they are quite capable, We are likely to have a dull time of it for the next three or founweeks. Just now, Earl Granville is in rather bad odour. When the deputation of colonists waited upon him last week, he told the representatives of the London journals that an official report would be sent to them. It was sent, done up in gorgeous fashion, with blue silk ; but it is now asserted by the deputation that it is an altogether inaccurate and one-sided report, and this assertion scorns to be borne out by comparison with the reports in the leading provincial papers, which were prudent enough to use the notes of their own staff. whereupon there is great grumbling both among the colonists and London journalists. Nor is it only there that the smiling earl's name is not in:the best odour just now. In various conspicuous spots of London, at the foot of St. Martin's Church in Tmlfalgar-squaro for one, the street passenger may see a table and large sheets of paper, and a printed notice, the effect of which is that a great number of working men and women in England are in a state of destitution from want of work, that there is plenty of work for them in the colonies, and that Government ought to help them to emigrate ; whereas it is rumoured that the Government means to give up the colonies. The petitioners therefore pray the Queen not to assent to any such proposal, but to hand to her successors, intact, the fair lands which she has inherited. Of course it is easy to see the hand of the Conservative Working Men's Associa tion in the memorial. Nevertheless it is being largely signed, and, so far as I could see, by the class from whom the petition ostensibly comes. Those persons who were present at Guildhall yesterday must have mused upon the fickleness of that many-headed bsast, the public. Less than a year ago the Overend and Garney directors scarce escaped from the Mansion House without injury to limb, so bitter was the execration, so etcited the animosity which the public then felt. Yes terday, however, all was changed. H they had been the greatest benefactors of their race ; if, instead of being the nvans, more or less direct, of bringing ruin upon countless f and of paralysing the enterprise of the country fa- nearly four years, they had been each of them a Peabody, they could not have had a greater popular triumph. It was a most absurd scene, although a most eeciting one. Frantic cheers, tears, violent shaking of hinds, inarticulate exclamations of delight, which the L end Chief Justice was as powerless to restrain as a child is to lull the noise of waves beating neon the rocks in a ; and all for what ? Because the jury had acquitted oa a criminal charge, as they were certainly bound to do, mm who had sold to the public an insolvent business as a solvent one. It may be taken for granted that nme of those who were shouting themselves hoarse tesenty-four hours ago were ever shareholders in Overend, Gamey, and Co., Limited. I had always thought that the English service of conse cration of bishoes was very unimpressive, and so it used to b• in the old days of Archbishop Sumner, when the core mmy was performed in Lambeth Chapel. But it is other wise now that the Abbey is once more used. The only c msecration I had ever seen until Tuesday was that of Archbishop Manning, at Moorfields, one of the most gorgeous functions witnessed since the Reformation. Yet Tuesday's did not suffer by comparison. If there was an absence of the various religious orders, if there were few picturesque vestments at Westminster, the ceremony was net spoilt, as that at Moorfields was, by minutia that seemed ludicrous to Anglican eyes, such as the rubbing of oil into the head of the Archbishop, as though he were in the hands of a hair-dresser. The Anglican service was bold in its main outlines, and stately. The culminating s •ene was very impressive. The body of the Abbey was shrouded in darkness ; and the chancel was feebly lighted with tapers. The central point of attraction was the Sacrarium. There, raised high above the rest of the Church, stood the four officiating bishops, with bodies erect (exceptDishopThirlwall, who stooped somewhat) and heads bent and hands joined, and before them knelt the three new bishops, seen through the golden haze of the many lights in the candelabra, which made Salviati's great Mosaic shine with points of bright light, and ins figures stand out with almost stereoscopic clear ness, so that our Lord and His Apostles them selves seemed to be present and taking part in this great gathering. And while every eye was tanned eastward, the divinest melody that I ever heard, the " Veni Creator" sung by a boy with a seraph's voice, rang out as though an angel had descended. Softly fell the swell notes to calm all anxious fears that there would be, even at this last moment, one more protest raised against the consecration of Dr. Temple. The scene was witnessed by a large number of Rugby boys past and pre sent, and it will never be forgotten by them. Neither will the sermon, which was one of the noblest I ever heard. The style and the voice, and, most of all, the thought, were singularly like Dean Stanley's, though in face Dean Lake does no t re s entle his brother of Westminster. The discourse took fifty minutes, and though I am one of those who think that sermons are generally half hours with the worst authors, this one seemed only too short. I trust it may be printed. It was a grand protest in behalf of that freedom of ccn science without which the English Church must cease to be the national Church. How far this freedom should extend I will un 'ertake to say. Yet it may be fairly questioned if Mr. Voysey has not outstepped Belief in the divinity of our Lord is, as Daan Lake remarked, the one essential element of Chris- Vanity. If Mr. Voysey believes it, he has taken a singular wIT of shewing it. Nevertheless, I find in the list of the Voysey Defence Fund Committee, just published, net only Viscount Amberley, Sir Charles Lyell, and Mr. Do rav ill e , whose presence there will surprise no one, but Dean Stanley, Professor Jewett, Mr, Ruskin, Sir IV. V. Guise, Sir Walter Trevelyan, the Hon. Percy Wyndham (Con servative M.P. for West Cumberland), Mr. Joseph Brown, Q.C., who is mentioned as the probable successor to Justice Hayes, and the Rev's. Lewis Campbell, J D. La Touche, and G. Wheelwright. The Rev. Michael Ferrobee Sadler, who has been appointed by Mr. Gladstone to succeed the new Bishop of Oxford at Honiton, owes his perfennent entirely to his works. He was personally unknown to the Premier ; but his books caused Mr. Gladstone to form so high an opinion of him that he offeredhim the living of Brightstone, when it fell vacant through the elevation of Dr. Moberly to the Di3hopric of Salisbury. Mr. Sadler declined that offer, but has accepted Honiton. Brightstona is worth .£630, Uoniton £3OO. The success of Mr. Benson's Brotherhood, at Cowley, has led to the formation of another similar society. 'lt is to be located at Stoke, in Staffordshire, and at the head of it will be the Rev. Luke Rivington, son of the well-known Church publisher, and until now a curate and the principal preacher at All Saints, Margaret-street. The society will be called the Brotherhood of the Holy Ghost, and will be essentially a preaching order. The mention of All Saints' Church reminds me to say that Mr. Upton Richards, the incumbent, is seriously ill, and has been prayed for pub licly. Last Sunday sir. beorge Macdonald, the well-known writer, preached in the chapel which formerly had for its minister Mr. Jones, probably the most eloquent Dissenting minister in London, one who was able to draw to the chapel Sunday after Sunday, peers, M.P's., and literary men, like Mr. Robert Browning. Dr. Macdonald looked miserably ill, I regret to say. His sermon was very clever, and among other remarks he said that ten times as much poetry is written in the winter as is written in the summer. Ile explained this by the fact that in the winter we have not Nature before us as we have in the summer, and that we therefore treasure her more, and write more freely about her. In the summer we arc taking in impres sions ; in the winter we turn them to account. Very interesting news has just come from Madagascar. The Queen has lately summoned a council in crder d?.cido if the idols aro national or private property ; novel application of the question which has lately vexed us with regard to the Irish Church and the universities. The council decided that some idols were national and sense private. The Queen, thereupon, ordered all the first to be burnt ; and at the same time many of tho owners of private idols cast them into the flames. tier Majesty has sent home to the London Missionary Society fur forty fresh missionaries. The appointment of a new Professor of Latin at Oxford still remains undetermined. I believe that the contest lies between Mr. Nettleship and Mr. Edwin Palmer. The latter gentleman is related to the Attorney-General. It is reported here that the trial of Dr. Kinglake for bribery iv his brother's Lbehalf at the last .Bridgewater t?leetiqn, is likely to fall through. It is believed that th 3 niE SUN, LONDON, FRIDAY EVENING, DECEMBER 24, 18G9 grand jury will throw out the bill. I can hardly think this is possible . . There is some talk of converting the Colosseum in Regent's-park into an opera-house. It must be mere talk, for such a speculation would prove an inevitable failure. The building is almost out of London ; it is far too large for a theatre, and at the present time Her Majesty's remains untenanted, splendidly though it has been fitted up. Lord Dudley is rich enough not to feel the loss of the rent; but a company would be ruined by it. Tho idea, of converting the Colosseum into a railway-station is far more practicable Albert Bierstadt, the American artist, known by his two great pictures, " The Storm in the Rocky Mountains,!' and "The Domes of the Yosemite," has another splendid work now exhibiting at Mr. Maclean's Gallery in the Hay market. It is a picture of Mount Hood, in Oregon. The mountain stands up alone, a magnificent peak of snow, flushed by the last rays of sunlight, while the foreground of wood and lake is in deep shade. It is a very impressive work. The artist is now, I believe, at New York. How many rings and brooches is a lady supposed to require to constitute a proper toilette? In to-day's Times there is an advertisement offering £5O reward for a dressing-case stolen from the Chester Railway Stati At, containing fourteen rings, five brooches, twelve bracelets, and any number of earrings. There were also i ins, pencil c vies, a watch, several lockets, two £5 notes, and a few sovereigns. Rather a rich haul this, and scarcely likely to be surrendered for the reward offered. But how did the theft come about? There must have been strange careless ness, especially as the thieves were noticed sufficiently to be described minutely. The newspapers have been making some strange mis takes this week. The Spectator, reviewing Mr. Knatchbull- Hagessen's book for children, called the author a Lord of the Admiralty, instead of Under-Secretary for the nne Department. The Rome correspondent of the Standard said that the Holy House of Loretto was Trought to Italy from Bethlehem, instead of Nazareth. But the strangest blunder of all has been made by the Atheneum. This paper, a literary journal par excellence, quoted the splendid farewell of King Arthur to Sir Bedivere (which Tennyson has embodied in his just published volume), as a new passage, although it was pub lished in a volume of poems, under the title of Norte d'Arthur," seven-and-twenty years ago. Really a critic should know his business better than this. Satur day's number of the Atheneum will contain reviews of the literature of the year in different countries ; that on Danish literature has been written by Miss Frederica Rowan, the translator of " Schleiermacher," and who is probably the only person in England, at all events outside the Danish Legation, who is capable of writing equally well in English and in Danish.—Sir Charles Dilke and Mr. Hepworth Dixon have both returned from Russia. The first has assumed his editorial duties at the Atheneum, and the second is busy over his book about the country he has just visited.—The review of Dr. Bence Jones's " Life of Faraday," in the last number cf the above-mentioned paper was, I believe, by Mr. Jeaffreson.—Just now Mr. Galton, the author of the work on hereditary g.unius, is one of the lions of the literary world, and though, like Mr. Lecky, a very shy lion, I need not say that he is a most intelligent one. Mrs. Cross, the biographer of her husband, whose experi ments intended to prove that elecricity is the source of life, e:ccited so much attention at the time, is, after an in terval of some little time, returning to literary work. The new number of the London Quarterly Review will lead cif with an article by the editor, Dr. Rigg on "National and Denominational Education." Dr. Rigg is one of the gentlemen who took part in the great meeting of the Education Union at Manchester. He is strongly ' in favour of maintaining and extending the present system, and, in fact, takes 'much the same line as was adopted by the Western Morning News a few days ago in an article, which has been copied into the leading Wesleyan paper. The January number of dllacmillan's Magazine will have an important article on Admiralty Reform, a paper by Miss Sewell cn the Protestant deaconnessos at Kaiserwerth ; one by Canon Wescott on Cathe dral Work ; one by Mr. Thomas Hughes on the Anarchy o! London, and one by Sir Edward Strachey on the Irish Land question. The fiat number of the rartfe/ic has just appeared. It is an art magazine, published by Seeley, and Co., and is edited by Mr. P. G. Hamerton, who under the transposed name of Notrenth, has been writing same pleasant art'clos on social and literary sub jects in the Glol e, and whose work, "A Painter's Camp in the Highlands," is I.nown, doubtless, to many of your readers. This new magazine is a great success. Not so the Gaiety Gazette, which though edited, I believe, by Mr. Hollingshead and Mr. Sala, and having several well known literary men on its staff, has come to an end after a very brief existence. A very different sort of paper, the Church News, will disappear at the end of the year. Originally edited by Dr. Lee as a Conservative and Ritualist organ, the copyright and back-stock were bought early in the year by the publisher of the Church Review. That somewhat dull paper will now absorb the News, and the combined journal will be published at the price of one-third of tho two together, viz., at twopence. Meanwhile, Dr. Little dale's paper, the Church Times, the organ of the Radical Ritualists (to put down which the Church .2Vcsrs was started), appears to flourish. The High Church party have started a new paper, called the Gospeller, which is to com pete with the British Workman. The Clerkenwell .News, being forbidden to use the name London Times, has chosen for its second title London Chronicle. One of the most remarkable articles published for a long timo is the first in the last number of the new scientific journal, 21 - ature. It is signed " H," and of course every one knows that the writer is Professor Huxley. He actually proposes to carry out Darwinism by Act of Parliament. How, is not very clear. I imagine that he would scarcely go so far as to say that the House of Commons should follow the example of Frederick the Great and select big women as wives for gignnt'c grenadiers. The First Napoleon was rude enough to say to some ladies who were arguing with him and beating him in argument Faite3 moi de conscrits. But England is not a military nation, and I don't think that there is much chance of the doctrine of natural selection being forced upon the people by law. Of new books I will mention to-day only Mr. Blanchard Jerrold's new book published by Mr. Hotten, and called "The Gavroche Party; being Literary Esti mates of Political France." Mr. Jerrold is well known as a fertile writer on Paris Life, and as the "B. J." whose pleasant articles on that subject have appeared from time , to time in the Athenceum. 711 E AMERICAN TREASURY REPORT. TREASURY DEPARTMENT, Dec. 6, 1869 I have the honour to submit herewith the annual re port of the doing: and condition of the Treasury Depart meLt. In this report 1 naturally trent tir,t the matters of administration and th n measures of public The officers in charge of the various bureaus and divisions of the Treasury Department have faithfully perf.)rmed their duties, and I co:►.mend their several reports to the consi deration of Cough ss. TREASURER SPINNER. The Treasurer of the United States has prepared an ela borate report, setting, forth the present condition of the Treasury, and furnishing a resume of the business of the Treasurer's office from len to the present term. The long and faithful services of the present Treasurer entitle him to the gratitude of the country. TEE INTERNAL REVENUE BUREAU. The report of the Commissioner of Internal Revenue is respectfully comtnet ded to the attention of Congress. Since the appointment of the present Commissioner the administration of the office has been constantly improv ing. The increase of receipts for the first five mouths of the present fiscal year, in the sum of 514,431,333 Of) over the amount collected in the first five months of the last fiscal year, is satisfactory testimony to the ability and integrity of the persons employed in that branch of the puLlic service. ItEIEIPTS FROM CUSTOMS. The amount paid by warrants for collecting the revenue from customs during the fiscal year ending June 30, 1868, was $6,378,385 4'i, and for the year ending June 30, 180, $5,376,738 13—showing a decrease of $1,001,617 30. The decrease in the cost of collecting the revenue has not been attended by any loss of efficiency in the service. On the other hand, it is claimed that the means for the detection of smuggling are better than ever before, and that the Custom-houso servic, is also constantly improving. FRAUDS IN THE APPRAISERS' DEPARTMENT. It ought to be understood that the chief means of col lecting the revenue and enforcing the Revenue laws must be found in the administration of the Appraisers' Depart ment. The frauds and losses arising from actual smug gling are unimportant compared with the losses sustained for these important positions at the present salaries. It is yet true that an incompetent appraiser or examiner may daily subject the Government to losses far exceeding the amount of his salary. THE PAYMENT OF INFORMERS. Under existing laws, certain Revenue officers, and other persons appearing as informers, are entitled to shares in fines and forfeitures. During the fiscal year 1868-69, the Treasury Department distributed the sum of $286,073 61 to such officers and to informers in the various eases arising under the Customs and Revenue laws„ A Liege additional sum was also paid through the Internal Revenue office. Tho reasons on which the laws granting such allowances aro based is that officers of the Covet it ment are stimulated to greater activity in the discovery of frauds and in bringing offenders to punishment. There can be no doubt that Elicit is the effect of this policy, but the experience 1 have bad in the Treasury Department has convinced me ttat the evils attending the system are greater tha❑ the benefits derived from it. It often occurs that Revenue officers aro led to assert claims iu behasf of the Government which have to just foundation in law or in the facts of the respective cases; and where real claims exist, it is often the object of the informer and officers who share in the penalties to misrepresent the case to the Government, se as to secure the Treater advantage to themselves. But a more serious evil is found in the practice of allowing perons to pursue a fraudulent course until a result is reached which will inure to the benefits of the officers and informers, instead of checking criminal prac tices at the outset. It is impossible to sot forth in exact language the character of the evils that grow out of the present system. I am, however, clearly of opinion that the Government ought to rely upon public officers for the proper performance of their duties, without stimulating thou} by any contingent advautagee. I haye eleewhere recommended an increase of sakriei of Custom-House officers ; and the abolition of the system of giving to them a share of fines, penalties, and forfeitures, will be an ad ditional reason for the increase of salaries in this depart ment of the public service. - THE FORCE EMPLOYED. It has become a practice for clerks and other persons who have held office in the Treasury Department to accept employment as agents or attorneys for patties having claims against the Department; and there is reason to be lieve that in some instances the information obtained while in the public service has been used in aid of the claimants. Without detailing all the objections to this practice, I respectfully suggest that a law be passed barring persons from practising beforo the Treasury Department as agents or attorneys in behalf of claims that were pending when such persons were officers of the Department. In March last there employed in the Treasury Depart ment at Washington, 2,848 clerks, messengers, and la bourers, at s monthly cost of $285,91151. At present the whole number of such employes is 2,441,aud their monthly pay amounts to $238,280 81, showing a decrease of ex penses at the rate of $571,688 04 per annum. It was found necessary, however, during the periods mentioned, to in crease the force in the Internal Revenue office and in office of the First Controller. This increase in the •cgate is at the rate of $80,440 per annum. This state t does not relate to the force employed iu the Bureau agraving and Printing. March last there were 62 Special Agents in the Ser vice of the Department, receiving in the aggregate for their services the sum of $371 10 per day. Each of these agents made his reports to the Department, and acted tinder its direct orders. The number at .pres.ut employed is 54, and their daily pay amounts to $6B 85. The pay of the agents has been increased, generally, in the hope that more efficient services might be obtained. The sea coast and frontiers of the country have been dividt d int') 16 special agency districts, and a superintendent appointed have agents. Tho orders of the been appointed and detailed to factor each. utde r the Assistants several district Department are in all cases sent to the agent in charge of the district, and the reports of his assistants are made to him. The agent is required to make a monthly report of his own doings and the doings of his subortiinat, a. The results thus far obtained appear to justify the organiza .ion introduced. ;, ggr, at of Et MANUFACTURE OF PAPER. Arrangements have been made for the manufacture of paper for the currency and other obligations of the United States, and for the printing of the same, which increase the security of the Government against unlaw ful issues from the genuine plates. Under the eleventh section of an act, approved June 30, 1861, entitled "Au act to provide ways and means for the support of the Go vernment, and for other purposes," a peculiar paper has been designated as the Government paper, and by that act it is made a felony for any person to have or retain in his possession any similar piper adapted to um makmg or any obligation or security of the United States, except under the authority of the Secretary of the Treasury or some other proper officer of the United states. Arrangements have been made for the manufacture of this paper by Messrs. Wilcox and Co., near Philadelphia, and the mills owned by them, which are exclusively de voted to this purpose, have been placed under the super vision of the officers of the Government, and such precau tions have been taken for the custody of portions of the machiner., as to render it improbable that the riper manu factured can be obtained by dishonest means. It is received by an agent of the Government stationed at the mills, and, ur.on the requisition of the Department, it is shipped to the National bank Note Company, the American Bank Note Company, or to the Printing Bureau of the Treasury Department, as the case may require. ENGRAVING AND PRINTING. Arrangements have also been made with each of the two companies mentioeed for preparing one set of plates for every issue of currency or other obligations. The Engraving and Printing Bureau at Washington prepares a third set, and each office places an imprint upon every obligation of the Government. Notice of the transmis sion of paper from the agent at the mills, and its receipt by each of the se eral offices of the deliveries therefrom to the Sealing Bureau in the Treasury Department, and also of dJliveries to the Treasurer of the United States, i s g iven each day by telegram or by letter, and on the fol lowing day the accountants in the Treasury Department prepare a statement showing the disposition of every sheet of paper manufactured. In month of November the paper at the mill, and iu each of the several printing compared with the acc oun t s in the Treasury Departeut. Was carefully coun . ed, and the resultlm n s t u a b n l g n: e e n g t a s t , e o f about 7,000,000 sheets received by the ag ent at the mills, di screpanc i e s were found to the extent of 60 sheets of fractional currency paper, and for the money value of which the Companies doing the work are responsibl-. It is believed that these arrangements furnish better seen: ity than has heretofore existed against the fraudulent issue of currency or other obligations of the Government by the use of the original dies or plates, and the system of the frequent examinations of the several establish- tnents entrusted with the work will disclose at once the discrepancies in the accounts. It is not probable that the changes made will diminish the expense; indeed the cost is greater than it would be if the work iu all its branches were done in the Treasury Department. In my judgment, however, the additional security is of more con sequence to the Government than the mere economy of money in the expense of engraving and printing. MARINE HOSPITALS The Marine Hospit d service of t' , .e country is, upon the whole, in an unsatisfactory condition. Several Hospitals have bee I erected at points where at present they are not needed, while the groat commercial cities like New York, Philadelphia, and Baltimore have no hospital accomino dations for Ski: and disabled seamen. _ A careful examination of these institutions has been made by Dr. Stewart, an agent of the Treasury Depart ment, ar.d by Dr. Billings of the United States Army. The result of their examination is that several hospitals have not been properly managed; that others should be closed, and that hospitals should be erected at New York, Baltimore, and Philadelphia. Measures have already been taken fur the sale of the hospitals at several paces where they are not needed. The hospital at New Or leans is represented as unsuitable, from bad location and other eirctunt-tances. ' Thu War Department is in posses sion of suitable hospitals at New Orleans and New York, which I sin informed are no longer needed for the use of the army. I respectfully recommend that they be trans fer. ed to the Treasury Department. public offices be adopted, it will be necessary to increase the salaries of collectors, naval officers, and surveyors at all the principal parts of the country. It is a plain truth that the Government has no right to expect the services of such competent men as Appraisers and Examiners at the present inadequate salaries. In the larger cities they are insufficient for the support of a family, and under such circumstances the Government is not without responsibility when it places its officers in such a position that they are compelled to choose between dishonesty on the one hand and penury on the other. The salaries of the Assistant Treasurer and the principal officers should also be increased, and for substantially the same reasons. _ _ _ _ It has been found impossible for the last few years to retain the services of the most efficient clerks in the Treasury Department except by additions to their lawful salaries through an appropriation placed in the hands of the Secretary fur that peep )se. The distribution of this appropriation is an unpleasant duty for the Secretary, and cannot be perfermA without producing jealousies and discontents among the offic.trs of the Department. Speaking generally, it may be said that the heads of Bureaus, chief clerks, and clerks in charge of divisions are inadequately compensated for the services they per form. Taw routine business of the Departmont can be peaormcd• in a sati,factory manner by clerks receiving the compensation now jirovi.lo.l by law ; but men on whose discretion and judgment the Governm-ut relies fcr the proper transaction of the business of the country, and whose labours tiro not limited to the ordinary hours of duty, should be made to foul that they are properly compeusatol. T 1.3 BETE:WE MARINI'. The Revenue 31atine system is an important and ex petsive branch of the Customs Revenue service. There are 36 vessels belonging to the Department, of which 12 are ee ilieg vessels and 21 are steamers. They vary i❑ size from 40 to 480 tots; 173 officers, and 2,100 men are re quired to men these vessels, and their running expenses amount to about $865,000 a year. Five of the vessels, side. wheel steamers, of 480 tons burden, are lake steamers and out of commission. They are rapidly diminishing in value, whi'e the care of them involves an annual expense of about $70,000. The vessels now in the service have beeu purchased and built at various times, and, as far as I can ascettain, without special reference to the nature of the duty to be performed, and certainly without any me tered plan. From one-half to three-fourths of the whole number are not adapted to the business. Congress recently ttPPropriated $300,000 for the con struction of four additional vessel; and proposals were issued and bids received under the authority thus con ferred upon the Secretary of the Tree sury, - but no con tracts have yet been wide. Au examination of the sub ject has forced the conviction upon me that it is inex pedient to incur the expenditure until the Department is in posses i to Of more accurate and complete iuformation. I shall, the rifore, take the opinion of a board of competent officers upon the following points -• First, the size and character of vessels required by the nature of the service that they are to perform; secondly, whether they should be constructed of iron or wood, or of a combination of these materials. When the report of the Commissioner shall have been received proposals will be issued for the construction of fear vessels as authorized. THE UNITED STATES MINTS. In addition to present Mint at Philadelphia, six branch mints have Leen established at various times in different parts of the country, one at San Francisco, one at New Orleans, one at Charlotte, N.C., one at Dahlonega, Ga., ono at Denver, Go!., and one at Portland, Oregon. Since the commencement of the war the branches at New Orleans, Dablonega, and Charlotte have been closed. An assay office, it is believed, will satisfy the necessities of the mining interests in Colorado, and for the present only a limited business will be done at the Portland Mint. In deed, with the construction of railroads, and the conse quently increasing facilities for communication, I am of opinion that the business of coining will be chiefly at one mist ispla the Pacific and at one mint upon the Atlantic coast. Under an act of Congress passed July 23, 1866, preparations are making for the sale of the mints at Char lotte and Dablonega. The mining and coining of the precious metals is now so large a national interest that it deserves more attention than it. has hitherto received. At present there is no bureau or officer in the Treasury Department at Washington charged specially with the management of this great inte rest. I therefore recommend that provision be made for the appointment of a branch officer to be entrusted wiar this branch of the public business, under the direction of the Secretary of the Treasury. THE COINAGE DIMINISHING. The coinage of the country is diminished in amount by the fact that in England and France the mint expenses are much less than with us. It would no doubt have a tend ency to prevent the export of the precious metals in the form of bullion if the mint charges were to be reduced or altogetLer abolished. An agreement was made on the 11th day of February, 1869, between the Secretary of the Treasury on behalf of the United States, and certain parties in California, leasing a lot of land in San Francisco known as the Custom- House Block, fa' the period of 115 years. This lease is subject to the condition that it shall be void if Cot%) ess, on or before the Ist day of January, 1870, shall take ad verse action in reference thereto. In view of the fact that the lease is for a long period of time, and being of the opinion that the Government should retain control of pro perty that may be needed for public pur poses, I think it expedient for Congress to annul the lease. NEW BUILDINGS. Considerable progress has been made upon the founda tions of the Post-office Building in the city of New York, and of the Post-office and independent Treasury building in the city of Boston. The Supervising Architect of the Treasury Department is of the opinion that the walls and roofs of the buildings may be completed during the next year, if sufficient appropriations are furnished. The works having been undertaken, I am of opinion that it is econo mical to make the necessary appropriations for their speedy completion. AMERICAN SHIPPING. During the month of December the Department will be prepared to submit a report upon the condition of our commercial marine. That report will show that the navi gation interests of the country have not recovered from the losses sustained during the war, and that efficient mea sures aro necessary for its restoration. INCREASE OP SALARIES. ----- ----- I cannot omit to call the attention of Congress to 1119 inadequacy of the salaries paid to officers in the Treasury Department who exercise discretion, and whose acts bind the Government, or effect directly its expenditures or revenues. Some of the salaries were fixed when the Go vernment was organised, others when new officers were lidded, and but few of them have been increased recently. It is unquestionably true that persons having equal ability and clothed with similar responsibility receive much larger comt ens.ation from individuals and corporations, and although many of the officers now in the public service are likely to continue, from the circumstance that their vo cation has led them aside from the ordinary channels of business, yet as an act of justice to them and in the inte rest of the Government, I earnestly recommend an increase of their pay. Speaking generally, this increase of pay should be extended to Revenue officers in the Customs service, such as collectors, surveyors, naval officers, and especially to appraisers and examiners in the Appraisers' Derart ment. Should the recommendation to repeal the laws granting s h ares of penalties, fines, and forfeitnres to PROPOSED urrouns. There are two changes in the organization of the Trea sury Department which I consider important. The first change wtich I refer to is the creation of a Chief Con troller of the Treasury, who shall be nut ho-ised to con trol the system of accounting by the several Auditors and Controller , , and to whom all appeals shall ha male upon questions arising iu the accounting offices of the Treasury. The creation of this office, clothed with the ' powers iudicated, will give uniformity to the accounting system, and I trust it will be in the power of the offices appointed to sitnplify the system and 'materially reduce the expenses of the Department in this particular. The second change to which I call attention is, in my opinion, even more important. At present there are eight divisions in the Sceretary's Office whose duties are con nected exclusively with the customs revenue system. Thero is no person except the Secretary of the Treasury who is by law authorised to pass finally, or in any way authoritatively, upon questions arising in the administra tion of the customs revenue laws. At the present time the revenue from customs is as large as the revenue from the excise system ; the number of men employed and the field of its operations are nearly as groat. It is impossible for the Secretary of the Treasury to give the various ques tions that arlso in - trio - atuniunn.wina ue taw s s rui LliaL attention which is essential to the service. The duties of superintending the collection of customs revenue are so varied, delicate, and important as to justify and require the exclusive attention of the most competent person whose service can be obtained. The experience of the present year in the administra tion of the Internal Revenue system, and the collection of the exeise tax, justifies the opinion that the establish ment of the office of Commissioner of Customs Revenue, corresponding in powers and position to that of Commis sioner of Inter-al Revenue, and the appointment of a competent Commissio , er would render the execution of the Customs Revenue laws much more efficient and har monious, while the revenue would probably be increased to the amount of many millions of dollars annually, nor is it probable that the expense would be materially greater. TifE DECHEME IN THE PUBLIC DEBT. Including interest earned and not paid and deducting cash on hand the debt of the United States on the Ist of March last was $2,525,463,260 01, and subject to the same condition it was 82,453.659,735 23 on the Ist of the present month, showing a decrease of $71,903,50178. This appa rent decrease of the public debt. is less than the actual decrease. Considerable sums have been paid on account of war and other old claims, not previously ascertained, and therefore not included in any debt statement. The account of March 1, from tho necessity of the case in cluded only the interest accrued and not then payable, but as a matter of fact there were outstanding and over due interest coupons, and these, several millions, have since been paid out of the ordinary revenue. Previous to March 1 no interest account had ever been kept with the several loans. Such measures as were found practic able have since been taken to ascertain the exact condi tion of these amounts. The bonds i ssued by the United States in aid of railways, amounting to $62,625,320, being in the nature of a loan, aro not included in the foregoing statement. During the fiscal year ending June 30, 1869, there was an excess of receipts over expenditures, including the in terest on the public debt, of $49,453,149 46 ; of this ex cess $12,992,370 03, as nearly as can now be ascertained, arose previous to March the Ist, and the remainder $36,460,779 43 between that time and the Ist day of July. This excess was applied from time to time to the purchase of 5-20 Bonds, and the excess of receipts since July Ist has been used in the same manner. The purchases amounted in the aggregate on the 30th day of November to 875,176,880. As a large part of the excess of receipts was realised in coin, sales of gold hive been made from time to time and the proceeds applied to the purchase of bonds. THE GOLD SALES, With the exception of the Kilo of moderate amounts of coin in Chicago, New Orleans, St. Louis, and Baltimore, for the payment of duties, the Salo of gold and the purchases of bonds have been made uniformly through the agency of the United States Treasurer in New York, and without any expense to the Government, except the comparatively small amount paid ;for advertising the proposals. The average p!eutiurn on gold sold since March 1 has been 32 3-10 per tent., and the average pre mium paid for bonds ha 3 been 16 98-100 per cent. Upon this basis of the sales of gold and the purchase of bonds, the average price paid for bonds in coin has been 88 55-100 per cent. TIIE SINKING FUND. The Act of Feb. 25, 1862, provided that the coin received for duties upon imported goods should be annually set apart as a sinking fund to the extent of one per ceutum of the entire debt of the United States. In conformity with this requirement, I have purchased bonds to the amount of $20,044,800, and designated them as belonging to the Sinking Fund. These purchases are a substantial com pliance with the entitle. From the 4th of March last, I have not felt myself authorized or rt quired to make :ley provision for the time that elapsed after the passage of the act, and previous to the cotuit.encement of the Administration, with the excess ti means at my command. 1 have purchased bonds, in addition to those purchased fur the Sinking Fund, to the amount of $;,5,432,000. These aro held as a Special Fund, subject to the action of Congress, and 1 respectfully recommend that they be added to the Sinking Fund, and that any further purchases that may be made be so added, until the gross amount shall constitute a fund equal to that which would have been created if there had been no delay in the execution of the law. THE DEPRECIATION OF TILE CURRENCY. The depreciation of currency is duo to two causes:— First, an excessive issue ; and, secondly, to the want of faith in the Government; and the extent of the influence of the first named cause cannot be ascertained until the second is removed substantially. Whenever our credit shall be so much improved at home and abroad, that holders of our bonds are disposed to retain them even when the public mind is excited upon financial subjects, we shall be able to judge more accurately the extent of the over issue of paper money. It is also true that the quantity of currency necessary for the transaction of the business of the country cannot now be fixed accurately. Since the el so of the war the wants of the States of the South have increased, and consequently a large amount of currency. has bees withdrawn trom other sections to supply the tleniand there created. The amount necessary for the putt oses of the South will steadily increase for the next two y( ars. The c( nstruction of the Pacific Railroad is likely to result in be substitution of paper for coin by the people t.f the Pak ific Coast. It is probable that the demand for paper for that purpose will not be less than $30,000,000. As a con. equence a very large quantity of coin will be withdrawn from circulation, and thus, practically, the coin will be it. creased upon the Atlantic Coast., and the pap..r in circulation in the States east of the Rocky Mountains will be materially reduced. These changes will tend to diminish the ditle , ence between paper and coin. WILES TO RESUME SPECIE PAYMENTS. The ability of the country to resume specie payment will not be duo to any special legislation upon that sub ject, but to the condition of its industries, and to the tinancial relations to other countries. These, of course, will be more or less dependent upon the general policy of the Government. The war exhausted the country of its material wealth, and the States of the South were literally impoverished. A necessary condition for the resumption of specie payments was the development of the industry of the nation, both South and North, and the conse quent accumulation of the movable products of industry to sti:h an extent that our exports of those products should be equal substantially to our imports. So long as it is necessary to pay for merchandise imported by the trhnsf. r of Government bonds or other evidences of in debtedness to other countries, so long it will be im practicable to resume and maintain specie payment. When the products of industry exported shall be equal, substantially, to the products of other countries imported, there will be no demand for specie for export, except what may arise from the circumstances that our bonds held abroad are seat home, sold in our markets, and the proceees exported in coin. When the credit of the country shall be fully established in Europe, and there shall be no doubt either of our ability or disposition to meet all of our obligations, bonds, heretofore and now, to a large extent held by merchants and bankers, will be transferred to capitalists for permanent investment. When this change shall have taken place the probability of our securities being sent borne, under the influence of p , litical or financial disturbances in England, will be very slight, and wbon, as a concurrent fact, our exports, exclu sive of public securities, shall be equal to our imports, specie payments may be resumed without even a temporary embarrassment to the business of the country. OUR COMMERCIAL MARINE. One of the most efficient means of strengthening the country in its financial relations with other countries is the development of our commercial marine. The returns show that a very large amount of the foreign trade is in English hands. We are not only thus dependent upon a rival country for the performance of the business which should be in the hands of our o vn people, but our ability to maintain specie payments is materially diminished. If the entire foreign trade of the country, both of exports and imports, were carried on in American ships the earn ings would not be less than $75,000,000 a year. At present the freights of the foreign trade in American ships do lot exceed $28,000,000. Were the trade exclusively in American hands, a largo part of this difference of $47,000,000 would be duo to citizens of the United States and payable in other countries, this amount would be thus added to our ability to pay for goods imported from those countries. lf, for example, an American citizen purchase in Now York 1,000 barrels of flour for $6,000, and export it to Liverpool in an American vessel, and it is there sold for $7,000, a bill of exchange may be drawn, and an invoice of goods of tho value of $7,000 purchased in England, although at the Custom House at New York there would he an apparent balance against the country of $l,OOO. But if, on the other hand, the 1,000 barrels of flour are ex ported in a British vessel, the proceeds of the flour realised in New Yom k, and which can be applied to the payment of goods bought in England, will be only $6,000, and there will remain an actual balance against the country of $l,OOO. This familiar example shows the importance of re- establishing our commercial supremacy upon the ocean; and I deem it, therefore, essential to our prosperity that the shipping interests of the country lie fostered, not only as a nursery for seamen, but also as an essential agency in enabling the Government to institute and maintain specie payments. It is an interest, also, which, in its development, is as important to the States and people remote from the sea coasts, as it is to the maritime eectione. Every additiou to our freilitiee for the export of the products of the interior is as advantageous to the producers as to the merchants and shipbuilders of the laud. WREN TO RESUME SPECIE PAYMENTS. While I do not anticipate that it will be necessary to delay resumption until our proper commercial position is regained, I am satisfied that the development of the navi gation and shipbuilding interest will improve the condi tion and rapidly augment the wealth of the country. The suggestions that I have made indicate my opinion that it will not be wise to resume specie payments while so large a part of the interest-bearing debt of the country is repre sented by Five-Twenty Bonds, and held by European merchants, bankers, and manufacturers. Questions that have been raised in regard to the nature of the obligation assumed by the Government in the issue of these bonds have undoubtedly deterred many persons from purchas ing them, as a permanent investment, and - consequently they are largely held in this country and in Europe for speculative purposes by persons who design to put them upon the market whenever the advance shall furuish a sufficient inducement, or whenever political or financial dis'urbances may create a demand for money for other purposes. It is probable that from seven to nine huudred millions of these bonds are DOW held in Europe, and to a considerable extent by persons who will dispose of them under the influence to which I have referred. Such a panic as exisied in Europe in MX, at the opoaing of the Austrian and l'ins,dau war, would be likely to in lice the return of a sefficieut amount to this country for sale to embarrass business, and in ease a resumption toe:111Se the suspension of the I anks. It is, 1h -refute, in my judgment, essentiel that the Leger part of the live-Twenty Bonds to withdrawn, and t.l at other bini:s be sullit tatted in their place, issued upon terms and conditions Which admit o n tt , ubt. In fin's, the practical question is not merely the resump roe of specie payment; as a measure by itself ; it is not difficult, but the problem is to resume under such circum stances that the position can betu inutateed, not only in times of tranquillity, but also in periods of excitene.ut and peril. Our course, it seems to me, is plain. Every measure of the Government bearing upon the subject should tend to appreciate the value of our paper cur rency. It is probable that some decrease in the volume of paper will ultimately be necessary, and I therefore re spectfully suggest that the Secretary of the Treasury be clothed with authority to reduce the circulation cf United States notes in au amount not exceeding $2,000,000 in any one month. Thus will the country be brought gradually (it may be and without disaster) into a condition when the resumption of specie payments will be easy. if not un avoidable. • THE PUBLIC DEBT. On the Ist of December ' 1869, the principal of the public debt of the United States, not dedncting bonds and cash on hand, amounted to $2,605,286,789 82. Of this amount, the sum of $356,113,258 50 is represented by 11uilea 6tuteB not.. ,bet bearing interest. The larger. part of this is needed for f3irculation, but the amount can be reduced from the ordinary revenue of the country if Congress shall consider it expedient to make provision for such reductioo. The fractional - currency in cireula- Voir was $38,885,564 68, and there is no occasion for any legislation iu reference to this item of the public dabs.. 'l'h.re were outstanding also certificates for gold de posited in the Treasury to the amount of $36,862,940. These certificates are redo triable on presentation. These three items amount in the aggregate to $131,861,763 18, and is making provision for the public dAt they are not necessary to be considered. Of the loan of January Ist, 1861, the sum of $7,022,000 is outstanding and payable on the Ist of January, 1871. The loan of 1868, of $20,000,000, is payable in 1573. The bonds known as Ten-forty bonds, amounting to $194,567,800, are not payable until 1874. lire Six per cent.bonds, payable in 1881, amount t 05283,677,000. As the bonds known as Eighty-one's and Ten forties, amounting in the aggregate to $478,244,900, are not due, and cannot be paid previous to 1874 and 1881, it is un necessary to consider them in making provision for a new loan. The Five-twenty bonds, amounting in the aggregate to $1,602,671,100 are either due or will soot become due, and it is to this class of the public debt, and this class alone, that attention should be directed. Of this amount the sum of $75,477,800 has been purchased since March last, and the bonds are now held by the Go , vernment. FUNDING THE FIVE-TWENTY BONDS, Before any measure for funding the Five-Twenty Bonds can be consummated the Government will be able to purchase at least $75,000,000 more. There will then re main on the Ist of July next about $1,450,000,000 of the Five-Twenty Bonds in the hands of the public creditors. Of the entire indebtedness of the United States only the unimportant sum of $27,000,000 will be due and payable previous to 1874. Under these circumstances it does not sewn to me to be wisa to authorise the funding of the whole amount of the Five-Twenty Bonds, which, as is now anticipated, will be outstanding on the Ist of July next; but that $250,000,000 at least should be suffered to remain either for purchase or redemption previous to 18;4. Should ths sum of $250,0u0,000 th.i left for that purpose the entire public debt would be in a condition to be easily redeemed. Between 1874 and 1881 the Ten-Forty Bonds could be paid and provision also made for the redemption of the bonds which will become due in the year 1881. It may be wise to re duce the proposed lean to $1,000,000,000, which would then leave for payment previous to 1881 the sum of about $670,000,000, or hardly more than $60,000,000 a year. Assuming that the proposed loan will be for en amount not exceeding $1,200,000,000, I recommend that it. be ffered in three classes of $100,000,000 each, the first class of $400,000,000 to be payable in 15 years, and to be paid in 20 years ; the second class of $100,000,000 to be payable in 20 years, and to be paid in 25 years; and the third class of $100,000,000 to be pay able in 25 years, and to be paid in 30 years. The es sential conditions of the new loan appear to ma to be these : First. That the principal and interest shall be made Fly able is coin. Second. That the bonds known as Five-Twenty bonds shall be received in exchange for the new bonds. Third. That the principal be payable in this country, and the interest payable either iu the United States or in Europe, as the subscribers to the loan may desire. Fourth. That the rate of interest shall nut exceed 4i per gent. per annum. Filth. That the subscribers in Europe shall receive their interest at Loudon, Paris, Berlin, or Frankfort, as they may elect. Sixth. That the bonds, both princip.►l and interest, shall be freo from all taxes, deductions, or abatements of any scrt, unless it shall be thought wise to subject citizens of the United States to such tax upon income from the bonds as is imposed by the laws of the United States upon iu ccmcs deriv.-d from other money . investments. TAXING U. S. BONDS. There are two reasons, and each seems to me to be a controlling . reason, why the bonds of the United States should be exempt from State and local taxes. If nut so exempt, the amount of the taxes imposed by the local authorities will be added to the interest the Go vernment will be required to pay, and thus the Nationa Govern ment will be compelled to provide for taxes i mposed by the local authorities. Secondly. Inasmuch a's the ability to borrow ,may, under some circumstances be essential to the preservation of the Government, the power should not., even in times of peace and prosperity, be qualified by any concession to the States of the right to tax the means by which the National Government is maintained. The right to use its lawful powers, free of any condition, restriction, or claim of another, ii an essential coed tiou of sovereignty, and the National Government should never surrender or qualify its power in this particu!ar. In offering the new loan, citizens and subjects of other Governments should receive the strongest assurance that the interest and principal are to he paid in coin, accord ing to the terms of the bonds issued, without any deduc tion or abatement whatsoever. In order to avoid the necessity of employing agents for the negotiations of the loan, I respectfully recommend that a liberal commission be allowed to subscribers, and that those who first sub scribe be permitted to select the class of bonds in whieli their suoscriptiens respectively shall be made. I further recommend, in connection with the proposed loan, that the banks established under the act to provide a national currency be required to substitute the bonds that may be issued under the proposed loan act for those now depo sited as security for the redemption of their bills, should any bank be unwilling to accept the new condition, pro vision should be made for the surrender cf its charter, and authority given for the/organization of new banks to supply the deficiency thus created. TILE NATIONAL REVENUE. An essentiAl condition to the success of the proposed new loan is the continuance of the present revenue sys tem. A chief means by which the present holders of th, Five-twenty bonds can- be induced td surrender them and receive a bond upon longer time and at a lower rate of interest is the certainty furnished by the magnitude of the national revenue that these bonds are soon to be redeimed. We must be prepared to offer them the al ternative either of accepting the new bond at a lower rate of interest, or payment of the principal of the existing bonds. When the Fire-twenty bonds shall have been funded to the amount of $1,000,000,000 or $1,200,000,000, the rvenue can be reduced materially, and yet sufficient sums be raised to meet the ordinary expenses of the Government, to pay the interest on the public debt ; and also to pay $25,000,000 to $50,000,000 of the principal annually Should our success in negotiating a loan be equal to my expectations, based upon the fact that the ability and disposition of the people of the United States to pay the public debt, are sufficient to justify me in assuming that the bonds of the United States will command the highest rates in the markets of the world. We shall then bo in a condition to enter upon the work of reducing taxation at the commencement of the next session of Congress. ' _ _ Oil the 30th of June, 1868, the amount of outstanding three per cent. certificates, and compound interest notes convertible into three per cent, certificates, was $71,604,890; on the 31th of June, 1869, the amount outstanding was $54,991,410, showing a. reduction of $16,613,480 in that form of indebtedness. On the Ist of December, 1869, the amouut outstanding was still further reduce.l to $49,716,150, showing a total reduction in 17 months of 321,888,740. The three per cent certificates are a substi tute to a considerable extent for the United States notes, being largely held by the banks as a portion of their re serves, and thus indirectly, though not to their full nominal value, they swell the volume of the currency. I recom mend that a provision bo made for the redemption of the three per cent. certificates within a reasonable time, and as a compensating measure for the reduction in the amount of currency which would thus be caused, that authority be given to grant charters for banks in the States where the banking capital is less than the share to which they would be entitled, to an amount not exceeding $35,000,000 in the aggregate. The redemption of the three per cent. certificates, and the additions to the banking capital might be so arranged as not to produce a serious di s turbance in the finances or business of the country; while additional banking capital would be supplied to the sections now in need of it, and this without any increase of the volume of circulation. THE BANXING SYSTEM. There are two evils in the present banking s ystem which require remedy by prompt and efficient legislation. The first is the practice on the part of the banks of allowing interests upon deposits. The effect of the practice is that moneys in the hands of individuals, which otherwise might be loaned for regular mercantile and other business pur poses, are diverted into the c ustody of bank s upon thee idea that if tho security is not better, payment can be oied at a moment's notice. Country banks, and others remote from tho large centres of trade, having received money on deposit for which they pay interest, are anxious to transfer such funds to other banks, from which they will receive an equal or lar g er amount of interest in return. They are stimulat ed also b y the desire to p la ce their funds where they can be at all times commanded. Thus influenced, largo su ms are p laced on de posit with banks in the cities, especially in the city of New York, which is the great centr e of trade an d finance for the i tlante coat. In the ordinary course of trade the currency of the country tends rapidly to the cities, and it is un wise to stimulate this tendency artificial means. But, the evil does not end with by the impoverishment of the country. As the baukr3 in the cities may be called upon at any moment to respond to the drafts of their depositors, they decline to make loans.representing such funds, upon commercial paper payable upon time, hut insist upon making " call loans, as they are termed, with Government bonds or other obligations, pledged as c)llateral security. Merchants generally will not borrow money in large sums, payable upon demand. The consequence is that the moneys thus accumulated in the city banks are loaned to perscns engaged in speculative pursuits. The extent of this evil is seen in the fact that of the bank loans in the city of New York in October, 1868, $98,000,000 were upon commercial paper, and $68,0 0,000 upon demand with a pledge of collaterals, and in October, 1869, $99,000,000 were upon commercial paper, and $59,000,000 upon de mand. In the former year 41 per cent., and in the latter year 37 per cent., of the loans made by the New York banks were upon demand. A further result is seen in the fact that parties borrow . big money upon commercial paper for legitimate com mercial purposes, pay from three to six per cent. addi tional interest per annum as compared with persons who borrow money for speculative purposes. I therefore respectfully recommend that a law be passed prohibit ing absolutely the payment of the interest by banks upon depo,its, and limiting also their loans upon colla terals to an amount not exceeding tau per cent. of their capital. I tun satisfied a1.,0 that the practice of certifying check=, even when funds are iu the bank to the credit of the drawer of the check, b; fraught with evil, and that it ought to be entirely prohibited. RECEIPTS AND EXPENDITURES. The following statement exhibits the receipts and ex pehibtures for the fiscal year ending Juno 30, 1869 :—Re ceipts Custom., $180,048,426 60 ; Internal Revenue, $158,356,460 86; Lands, $1,020,314 ; Direct Tax, $765,68561; Miscellaneous sources, $27,752,829 79 ; total, exclusive of loans, $370,943,747 21. Expenditures -Civil Service, $56,474,061 53 ; Pensions and Indieus, 535,519,544 84 ' • War Department, $78,501,990 61; Navy Department., $20,000,757 97 ; interest on the Public Debt, $130,694,242 80; Premium on 7 3-10 U.S. Treasury Notes, $300,000 00 ; Total, exclusive of loans, $321,4.10,597 75; Receipts in excess of expenditures, $49,453,149 46. The following statement exhibits the receipts and ex penditures for the quarter ending Sept. 30, 1869 :-110- ceipts - Customs, $52,596,921 86 ; Internal Revenue, $17.926,352 51 ; Lands, $893,864 00; Miscellaneous, $7,422,483 57; total, exclusive of loans, $108,831,622 20. Expenditures—After deducting the amount of repay ments by disbursing officers and others—Civil Service, $15,102,202 05; Indians and Pensions, $13,M7,942 79 ; War Department, $13,595,468 05 ; Navy Department, $5,782,630 96 ; interest en the Public Debt, $37,452,270 74; total, exclusive of loans, $85,480,514 59 ; Receipts in excess of expenditure, $23,351,107 43. The estimated receipts and expenditures for the three remaining quarters of the fiscal year ending June 30, 1870, are as follows:—Receipts—Customs, $135,000,000 • Inter nal Revenue, $127,000,000 ; Lands, 84,000,000 ; Iliscella neous sources, $20,000,000 ; total, $286,000,000. Expen ditures - Civil Service, $40,000,000 ; Pensions and Indians, $21,000,000; War Department, $40,500,000; Navy De partment, $14.000,000; Interest on the Public Debt, $93,75 ,1 ,000 total, $209,250,000. Estimated receipts in excess of expenditure, $76,750,000. Estimated receipts and expenditures based upon exist ing laws for the fiscal year ending June 30, 1871 : Receipts.—Customs, $185,000,000; Internal Revenir, $175.000.000; Lauds, $5,000,000 • Miscellaneous services, $18,000,000,000 ; total, $393,000,000. Expenditures. — Civil, Foreign, and Miscellaneous, $60,000,000 • Interior, Indians, and Pensions, $36,000,000 ; War Department, $50,000 , 000; Navy Department, $18,000,000; Interest on the Public Debt, $127,000,000; total, 8,191,000,000; Estimated receipts in excess of expenditures, $102,000,000. The foregoing estimates of receipts are made upon the assumption that the laws now in force relating to customs and internal revenue will not be so changed :es to materi ally affect the revenues, and the estimates of the expendi tures are based upon the expectation that no extraordi nary appropriations will be made. GEO. S. BOUTIVELL, Secretary of the Treasury. LLS7 FOR THE USE OF VISITORS TO THE METROPOLIS. MUSEUMS. Antiquarian—Somerset House. Admission by application to the secretary. Botanic—Royal Botanic Society of London. Regent's park. Admission daily by orders from follows. Royal Gardens, Kew. Open daily, 1 till 6, free. British—Great Russell-s reet. Open free on Mondays, Wednesdays, and Frida s. 10 to 4 • summer months 10 till 7. Closed Ist till 7th JanuaryAst till 7th May, and Ist till 7th September; al o on ail thanksgiving days. City—Guildhall. A collec on of antiquities, &c. Daily, 10 till 5. Geological- Jermyn street. Open daily (except Fridays) free. _ _ . India — lndia Office, Charles-street. Asiatic natural his tory, antiquities, &c. Open free on Mondays, Wednes days, and Fridays, and on Thursdays IT orders. King's College Strand. Anatomy and curiosities. Daily le till 4. Patents—South Kensington. Open free daily. Royal Institution--21, AlbertLarla-street. Various objects. Models and inventions. • baily, 10 till 5. Royal Military Repository—Woolwich. Models of forti fications, cannon, and warlike appliances. Daily, 10 till 4. Royal Polytechnic Institution-309, Regent-street. Scien • title, with lectures. Open daily, till 10 p.m. Is. Soave's-13, Lincoln's-inn-fields. Antiquities, curiosities, and pictures. Open Wednesdays, Thursdays, and Fri days in April, May, and June; and Wednesdays, from F..brnary to August. Admission on application to the Curator! Society of Arts—John-street. Adeiphi. Inventions, pic tures, curiosities &c. Daily : admission by member's order. _ _ _ SZtitTlZensington—Cromwell-rond. Open on Mondays, Tu , sdays, and Saturdays, 10 till 10, free ; on Winn- days 10 till 4,5, or 6. 6d. Tow. rof London—Ancient armour, Sr.o. Open daily, 10 till 4. Is. PICTURE GALLERIES. Bridgewater Gallery—Cleveland-square. Cards to view may be obtained from Mr. Mitchell, Old Bout-street. British Artists—Suffolk-street. April to July. ls. British Institution-52, Pall-mall. Pictures by British Artists, in February, March, and April ; and by Ancient Alasters, June, July, and August. - is. Buckingham Palace Pictures. —May be viewed by an order from the Lord Chamberlain. Cartoons of Raphael —South Kensington Museum Mon day, Tuesday, Saturday, free • other days, 6d. Crystal Palace—Sydenham. 'iudern Pictures and Sculp- ture. Is. Dulwich Gallery—Dulwich. Chiefly Flemish and Dutch Pictures. Open free daily, except Friday. Flaxman Gallery—University of London, Gower-street. Foundling liospital—Guildford-street. Open NtondaYsi 10 till 4. Gallery of Ancient Masters-49. Pall. Greenwich Painted Hall Greenwich. Mondays and Fri days Free : other days, 4d. Guildhall—City. May be seen on application to the "nail keeper. Hampton Court Palace.—The galleries are open free aailY, except on Friday. Monument—Fish -street Hill. Every day. 6d. National Gallery—Trafalgar-squars. Open free, Mondays Tuesdays Wednesdays, and Saturdays. National Portrait Gallery-29, Gret. Seorga-street. free, Wednesdays and Saturdays. Trinity House—Trinity-square, Tower-hill. Models of light houses, &e. Daily, 10 till 4. Tussaud's Waxwork-58, Baker-street. Open daily til 10 p.m. Is. - SUBURBAN PLACES OF RESORT. Cremorne Gardens—Chelsea. ls. Crystal Peace '?ark—Sydenham. Open daily, Is.; Satur days. 2s. 6d. Greenwich Park—Greenwich. On.n rAe Hunpton Court Gardens.—Open free daily. Highbury Barn and Gardens —Highbury. 6d. and is by refreshment tickets. Kew Gardens —Kew. Open free, daily at oce o'clock. Richom”d Park —Richmond. Open free., daily. R )sherville Gardens—G7avesend. Open daily. 6d. Royal Horticultural Gardens—Kensington. Admission by members' order. Windsor Great Park—Windsor. Girt' free. Windsor Castle may be visited on Mondays, Tuesdays, and Fri days, by tickets obtainable at the Lord Chamberlain ei Office, in the Castle. SIR SYDNEY WA.TERLOW.—A. deputation of the Liberal electors of the county of Dumfries, yesterday , waited upon La ly Waterlow at Fairseat House, High gate, and presented her with a portrait of her husband, Alderman Sir Sidney Waterlow, as a mark of their esteem for him, and for his services to the Liberal cause in the late contests for Dumfries shire. The portrait is by Mr. D. Macnee, R.S.A. An address to her ladyship accompanied the presentation. 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