The Sun.
London, England, 1869-01-27 00:00:00

SPAIN.

Pending the official report of the elections, the news
from Spain is all rumour. The Times correspondent
announces by telegraph that the long-expected decree estab-
lishing religious freedom and a free Church in a free State
will be shortly published. This important resolution
seems to have caused infinite disturbance in the Peninsula.
There has been a panic on the Stock Exchange;
apprehensions of dissension in the Cabinet and of some
sudden resolution on the part of the Government prevail;
and it is rumoured that the Papal Nuncio will be dismissed.
All which, with other signs, goes to prove that the down-
fall of the Catholic Establishment under an unsettled
form of government will be attended with very serious
results.

A correspondent of the Libert4 writes more cheerfully.
He says that a great combination has been formed. Many
Progressists, Republicans, and Democrats have agreed to
bury.the hatchet and unite for the good of their country.
The existing uncertainty is so ruinous that it must be ter-
minated at any price. Neither Marshal Prim nor Rivero
is a stranger to this noble determination. As to the pro-
gramme of the Alliance, the writer will endeavour to
" announce it in his next." Such combinations have often
been announced before, but as so many parties are strongly
represented in the Cortes—indeed the union of any two of
the three strongest would overpower the third—it is quite
possible that the more kindred politicians may seek
strength in union.

AMERICA.
Liberal Governments are taking up in earnest the clues-
tion of economical administration. The Republican party
in the United States Congress has already shewn its
determination to bring down and keep down expenditure ;
the chairman of the Appropriation Committee has
publicly announced rigid economy as the policy of General
Grant's Government, and the figures in the Appropriation
Bills contrast remarkably with the items of former years.
There was a debate on this great subject on the Gth, during
which Mr. E. B. Washburne, the chairman of the Appro-
priation Committee, made a very important speech. He said
the time had come for the country to make a fresh start.
The war had greatly increased the burdens of the nation,
but there were other causes of extravagance which might
be at once avoided. Incidental to the war was the lavish
and unguarded expenditure of public money, the
granting of immense contracts, and the inflation
of the currency. The base, venal, and unpatriotic
hastened to take advantage of the misfortunes of
their country. If this jobbery was to cease, Congress
must aid the Ministry. The latter was willing to do its
share. Coming to the practical, Mr. Washburne said
that whilst the expenditure for 1866 had been 520 millions
of dollars, the estimates for the current year were 330
millions, and he believed that for next year they might 'be
reduced to 290 millions.
Congress met the Ministry in a kindred spirit. Mr.
Washburne seems to have excited very general enthusiasm.
Mr. Fernando Wood, one of the leading Democrats, said
he was certain that he spoke the sentiments of the Demo-
cratic minority of the House when he said that so far as
General Grant would faithfully either initiate or carry
out any reform,
the minority would give him its feeble
support. An attempt was made to economise so far as to
strike off the item granted for the support of the fleet
engaged in suppressing- the slave trade ; but this motion,
which would have violated the treaty with England, was
rejected. As Mr. Washburne pointed out, money might
be saved in every department of the Government.

THE EMPRESS EUGENIE.
The explorations of the famous correspondent of the
Telegraph in high French society have taken a new direc-
tion. It is impossible to believe that this gentleman is on
friendly terms with any femmes de chambrc, and the inevit-
able conclusion therefore is that the übiquitous journalist
is admitted to confidential chats in the Empress Eugeuie's
dressing-room, and, like gentlemen of the time of Addison,
Pays morning visits during the process of robing. Her
Majesty, it seems, has brought advanced science to bear upon
the art of dressing. Nothing, we should imagine, would more
forcibly illustrate the maxim, ars longa, vita brevis, than
the process of changing an elaborate toilette several times
a day. The French Empress has experienced this difficulty,
and, what is more, has met it. She has also solved the diffi-
cult problem of dressing with wonderful quickness. " The
arrangements that have been made to compass this
end are very intricate, and resemble the transforma-
tion scene in a pantomime. When the Empress
is about to pass from her apartnient to her dressing-room,
the first femme de chambre touches an electric bell that corre-
sponds with the room over head. Thereupon a trap door
in the ceiling of the dressing-room opens, and the toilette
the Empress has signified her intention of wearing is
lowered from above—petticoats, slip, dress, tunics, all
ready to put on, one inside the other, with their
trimmings of flowers and ribbons, flounces, and lace. A
quarter of an hour after she is dressed, necklace, jewels,
and ear-rings are in their places, and then the hairdresser
is summoned ; for the Empress, contrary to the usual
fashion, leaves her coiffure to the last. The whole process
is completed in less than half an hour." It is only to be
wished that the blessings of this invention be extended,
that a cheap form of the apparatus be devised for the
public at large, and that a modification be adopted for the
suffering stronger sex. The story suggests another con-
sideration. . If half an hour be required for dressing under
these favourable circumstances, what amount of torture
must have been undergone previously?

THE WAR IN PARAGUAY.
The French journals have received information that the
defeat of Lopez was less serious than was represented ; in
fact, he still occupies Villeta. But a private telegram
received in Liverpool supports the earlier news. After
.-vo terrible battles, Villeta was taken by the Allies.

UNITED STATES' SIIIPPING.--The following report
confirms in a marked way the facts we have so long
urged, and shows the necessity for some important
change in the Navigation Laws of the United States.
We are glad to see that the American press very
generally advocates such a modification as will permit
American citizens to purchase, and own as American,
foreign-built steamers to be engaged exclusively in the
foreign trade of the country. The Treasury Department
of the United States Government has published, as a
supplement to SecretarylKulloch's annual report, a small
pamphlet of important statistics on the tonnage of the United
States, accompanied with a paper by Mr.Nimmo on the ship-
building of the Union from 1817 to 1868, showing a tonnage
in 1868 but little more than half what it was in 1855, and
very little above what it was in 1847. On the 30th of June,
1868, the total tonnage of the United States,including steam
and sailing vessels, barges, and canal boats, we are told, was
as follows : On the Atlantic and Gulf coasts, 2,974,975
tons; Pacific coast, 166,512 tons; Northern Lakes, 695,604
tons ; Western Rivers, 581,217 tons ; making a total of
4,318,309 tons. The number of vessels which return this
tonnage consisted of 18,189 sailing vessels, 3,619 steam
vessels, 1,631 barges, 4,679 canal boats, making a
total of 28,118. The tonnage in June, 1861, was
5,539,812 ; in June, 1838, only 4,318,309—a decrease of
1,221,503 tons. In the fiscal year 1854-55, the most pros-
perous year in shipbuilding, 373 ships and barks were
built; in 1867-68 only 69. Mr. Nimmo, showing the falling
off in the building of large vessels since the war, says :
" During the five years from 1853 to 1858 65 per cent. of our
seagoing tonnage built on the coast consisted of ships and
barks, while during the five years from 1863 to 1868 only 28
per cent. consisted of ships and barks." From 1852 to 1862
the aggregate tonnage of American vessels entered at sea-
ports of the United States was more than double that of
foreign vessels ; from 1863 to 1868, instead of being double,
it was declined till it has come to be only 26 per cent.
The steam marine gave even more marked returns. The
arrivals of vessels, of which we have a return for the port
of New York, bear out the above statistics. Those coming
from foreign ports, in 1363, were 4,831 against 4,676
in 1867. The class of vessels were as follows :
Steamers, 619; shins, 390 ; barks, 1,055 ; brigs, 1,499 ;
schooners, 1,223. The arrivals of American vessels were
2,095 in number, distributed as follows :—Steamers, 204 ;
ships, 223; barks, 359 ; brigs, 535 ; schooners, 771. The
arrivals of the British vessels wore 2,032, distributed as
follows:--Steamers; 355; ships, 102; barks, 378; brigs,
771; schooners, 428. The North-German vessels were
379 in all, of which 109 were steamers, 49 ships, 152
barks, G 3 brigs, and 6 schooners. The French vessels
were 29, of which 26 were steamers.
THE SALMON FISHERIES.—At a meeting of the Carlisle Angling Association, held on Friday night, it was
stated by the committee in their report that the spawning
beds in the river Eden. are "literally crowded with sal-
mon," and the oldest watchers on the river never saw so
many salmon in the river as there are this year. Similar
reports come from the Nit], in Dumfriesshire.

REVENUE OF THE UNITED 87ATES.

It has been shown that within a period of three
years and seven months the revenues, or the re-
ceipts from all sources of revenue, reached the
enormous sum of $1,662,496,062 20, and that
$630,431,125 90 were paid on debts which were
actually due at the close of the war and for boun-
ties, which, like the pay of the army, were a part of
the expenses of the war. Adding the amount thus
paid to the debt as exhibited by the books of the
Treasury on the first day of April, 1865, it appears
that the debt of the United States at that time was
$2,997,386,203 24, and that the actual reduction has
been $470,256,650 42 ; and but for the advances to
the Pacific roads and the amount paid for Alaska
would have been $519,650,650 42. The secretary
begs to suggest, as he has substantially done before,
that alleviation of the burden of the public debt is
to be obtained, not in a decrial of the national
credit, not in threats of repudiation, not in a fur-
ther issue of irredeemable notes, not in arguments
addressed to the fear of the bondholders, but in a
clear and explicit declaration by Congress that the
national faith, in letter and spirit, shall be in-
violably maintained ; that the bonds of the United
States intended to be negcciated abroad as well as
at home are to be paid when the time of payment
arises in that currency which is alone recognized
as money in the dealings of nation with nation.
Let Congress say this promptly, and there can be
but little doubt that the credit of the Government
will so advance that within the next two years the
interest on the larger portion of the debt can be
reduced to a satisfactory rate. He therefore
earnestly recommends that it be declared, withous
delay, by joint resolution, that the principle of all
bonds of the United States is to be paid in coin. It
is also recommended that the Secretary be autho-
rized to issue $500,000,000 of bonds, $50,000,000
of which shall mature annually ; the first $50,000,000
to be payable, principal and interest, in lawful
money, the principal and interest of the rest in
coin, and also such further amount of bonds as may
be necessary to take up the outstanding six per
cents., and the non-interest bearing debt, payable
in coin 30 years after date, and redeemable at any
time after ten years, at the pleasure of the Govern-
ment, the interest to be paid semi-annually in coin,
and in no case to exceed the rate of five per cent.
Provided, that the Secretary may, in his discretion,
make the principal and interest of $500,000,000 of`
these bonds payable at such city or cities in Europe
as he may deem best. The fact that according to
the recommendation $50,000,000 of the bonds to be
issued are to become due each year for ten conse-
cutive years (at the expiration of which time all of
the bonds would be under the control of the Go-
vernment) would insure an annual reduction of
$50,000,000 of the Public Debt, and impart a credit
to the other bonds which-would insure the negotia-
tion of them on favourable terms. Of the expe-
diency of an issue of bonds corresponding to some
extent in amount with those held in Europe, the in-
terest and principal of which shall be paid in the
countries where they are to be negotiated, there can
be but little doubt. On this point the Secretary used
the following language in hisreport of 1866 :—`The
question now to be considered is not, ' how shall our
bonds be prevented from going abroad? for a large
amount has already gone, and others will follow, as
long as our credit is good and we continue to buy
more than we can pay for in any other way ; but
how shall they be prevented from being thrown
upon the home market to thwart our efforts in re-
storing the specie standard ? The Secretary sees no
practicable method of doing this at an early day but
by substituting for them bonds which being pay,
able, principal and interest, in Europe, will be less
okety to be returned when their return is the least
to be desired. The holders of our securities in
Europe are now subject to great inconvenience and
not a little expense in collecting their coupons, and
it is supposed that 5 per cent., or perhaps 41- per
cent., bonds, payable in London or Frankfort, could
be substituted for our 6 per ceuts., without any other
expense to the United States than the trifling com-
missions to the agents through whom the exchange
might be made. The saving of interest to be thus
effected would be no inconsiderable item, and the
advantages of having our bonds in Europe placed in
the hands of actual investors is too important to be
disregarded. The Secretary has nothing further to
say on this point than that careful reflection has only
strengthened his conviction of the correctness of the
views expressed in foregoing extract. In recom-
mending the issue of bonds bearing a lower rate
of interest to be exchanged for the outstanding
six per cents., the Secretary must not be understooi
as having changed his opinion in regard to the ex-
pediency or the wisdom of the recommendation in
his last report. Ile refers to what be then said in
advocacy of that recommendation, as an expression
of his well-considered opinions at the present time,
and be is only prevented from repeating the recom-
mendation by the fac'. that it met with little appro-
val at last sesWon, and has not grown into favour
since. Ile sincerely hopes that the future history of
the debt will vindicate the wisdom of those who are
unable to approve the proposition.
The accompanying report of the Commissioner of
Internal Revenue gives the necessary information
in regard-to the Bureau, and contains many very
judicious recommendations and suggestions, which
are worthy the careful consid, ration of Congress.
The internal branch of the Revenue service is the
one in which the people feel the deepest interest.
The Customs duties are collected at a few points,
and although paid eventually by the consumers,
they aro felt only by the great mass of the people in
the increased cost of the articles consumed. Not
so with the internal taxes. These are collected iu
every part of the Union, and their burdens fall, to
a large extent, directly upon the tax-payers. Asses-
sors, collectors, inspectors, detectives, necessary
instrunn nts in the collection of the revenues, are
found in every part of the country ; there is no
village or rural district where their faces are not
seen, and where collections are not made. The
eyes of the whole people are, therefore, directed to
this system, and it is of the greatest importance
that its administration should be such as to entitle it
to public respect. Uufortunately this is not the
case ; its demoralization is admitted, and the ques-
tion arises, where is the remedy ? The Secretary is
of the opinion that it is to be found in such amend-
ments to the Act as will equalize the burdens of taxa-
tion and in elevation of the standard of qualification
for Revenue offices. Upon the subject of internal
taxes the Secretary has already spoken in regard to
the charadter of the Revenue officers : he has only
to say that there must be a decided change for the
better in this respect if the system is to be rescued
frOm its demoralized condition. After careful re-
flection the Secretary has come to the conclusion
that this change would follow the passage of the
bill reported by Mr. Jenckes from the Joint
Committee on Retrenchment and Reform on the
14th of May last, entitled A bill to regulate
the civil service and promote the efficiency
thereof.' The Secretary gives to this bill his
hearty approval, and refers to the speech which
was made upon its introduction by the gentleman
who reported it for an able and lucid exposition of
its provisions, and for a truthful and graphic de-
scription of the evils of the present system of ap-
pointments to office. On the sth day of October
last, the day for their regular quarterly reports, the
number of National Banks was 1,644, 17 of hich
were in voluntary liquidation ; their capital was
$420,634,511, their discounts $655,875,277 35,
their circulation $295,684,244, their deposits
$604830,278 40. In no other country was so large
a capital .ever invested in banking under a single
system as is now invested in the National Banks.
Never before were the interests of a people inter-
woven with a system of banking as are the interests
of the people of the United States with their na-
tional banking system. It is not strange therefore
that the condition and management of the National
Banks should be to them and to their representa-
tives a matter of the deepest concern. That the na-
tional banking system is a perfect one is not as-
serted by its friends; that it is a very decided itn-
provement, as far as circulation is regarded, upon
the systems which it has superseded, must be ad-
mitted by its opponents. Beforeit was established the
several States, whether in conformity with the Consti-
tution or not, jointly with the General Government
during the existence of the charter of the United
States Bank, and solely after the expiration of that
character, exercised the power of issuing bills of
credit in the form of bank notes through institu-
tions of their own creation, and thus controlled the
paper money, and thereby in no small degree the
business and commerce of the country. In May,
1863, when the national Currency Bureau was
established in Washington some 1,500 banks,
organized under State laws, furnished the people of
the United States with a bank-note currency. In
some of the States the banks were compelled to pro-
tect, partially at least, the holders of their notes
against loss, by deposits of securities with the proper
authorities. In other States the capital of the
b inks, that capital being wholly tinder the control
of their managers, was the only security for the
Bedemption of their notes. In some States V;ere
was no limit to the amount of notes that might
be issued if secured according to the require-
ments of their statutes, nor any necessary relation
of circulation to capital in others, while notes
could be issued only in certain proportions to capi-
tal. There was no restriction upon the number of
banks that might be organized, the notes of a few
banks being payable or redeemable at commercial
centres were current iu most of the States, while
the notes of other banks, perhaps just as solvent,
were uncurrent beyond the limits of the States by
whose authority they were issued. How valueless
were the notes of many of the State banks is still
keenly remembered by the thousands who suffered

by their insolvency, the direct losses sustained by
the people by an unsecured bank note circulation,
and the indirect losses to the country resulting
from deranged exchanges, caused by a local cur-
rency constantly subject to manipulation of money
changers, and from the utter unsuitableness of such
a currency to the circumstances of the country
CAR be counted by millions. It is only necessary
to compare the circulation of the State banks
with that furnished by the national banks to
vindicate the superiority of the present system.
Under the national banking system the Govern-
ment which authorises the issue of bank notes and
compels the people to receive them as money. as-
sumes its just responsibility and guarantees their
payment. This is the feature which especially dis-
tinguishes it from others, and gives to it the
greatest value. The object of the Secretary, how-
ever, in referring to the national backs is not to
extol them, but to call the attention of Congress to
the accompanying instructive report of the Con-
troller of the Currency, especially to that part of
it which exhibits the condition and management
of the banks in the commercial metropolis, and
to the amendments proposed by him to the
Act. On the sth day of October last the loans
or discounts of the banks in the city of New
York amounted to $163,634,07023; only $90,000,000
of which consisted of commercial paper, the balance
being chiefly made up of what are known as loans
of call, that is to say of loans of collaterals subject
to be called in at the pleasure of the banks. Mer-
chants or manufacturers cannot, of course, borrow
on such terms, and it is understood that these loans
are confined merely to persons dealing, or rather
speculating in stocks or coin. This statement shows
to what extent the business of the banks in New
York had been diverted from legitimate channels,
and how deeply involved the hanks have become in
the uncertain and dangerous speculations of the
street. The deposits of these institutions on the day
mentioned amounted to $226,645,655 80, and of
their assets $113,332,68920 consisted of certain
cash items, which were in fact mainly certified
checks which had been passed to the credit of depo-
sitors, and constituted a part of the $226,645,655
80 of deposits, although the banks always deduct
such checks from their deposits in making up their
statement for the payment of interest and their esti-
mates for reserves. It is understood to be the practice
of a number of the banks—perhaps the practice
exists to a limited extent in all—to certify the checks
of their customers in advance of the deposits, gut of
which they are expected to be paid; iu otherwords,to
certify checks to be good under an agreement be-
tween the banks and the drawers that the money to
protect them shall be deposited during the day, or
at least before the checks which go through the
Clearing House can be presented for payment. The
Secretary has learned with great surprise that a
number of banks, generally regarded as being under
judicious management, certify in a single day the
checks of stock and gel 1 brokers to many times the
amount of their capitals, with no money actually on
depcsit for the protection of the checks at the time
of their certification. A more dangerous practice,
or. one more inconsistent with prudent—not to say
honest—banking, cannot be conceived. It is un-
authorized by the Act, and should be I rohibited by
severe penalties. Aside from the risk incurred by
this reckless method of banking, the effect of such
practices is .to foster speculation, by creatino. infla-
tion. It is, in fact., part and parcel of thace'fictiti-
ous credit which is so injurious to the.regular busi-
ness of the city, and to the business of all parts of
the country which feel and are affected by the pul-
sations of the commercial centre. It is this very
dangerous practice, combined with the more general
practice of making loans on call, which leads to un-
safe extension of credits, and makes many of the
banks in New York helpless when the money mar-
ket is stringent.

The Commissioner of Internal Revenue states
chat the largest receipts for internal revenue were in
1866. Reductions in the scale of taxation have
since been made at five several times. The aggre-
gate receipts from internal revenue, exclusive of the
direct tax upon lands and the duty upon the circu-
lation and deposits of national banks, were--For
the year 1866, $310,906,984; 1867, $265,920,474 ;
1868, $191,180,564; of these there were from banks,
trust companies, and savingsinstitutions, $7,650,062
in 1866, $5,815,515 in 1867, $5,489,753 in 1868 ;
from railroads $11,076,260 in 1866, $7,507,507 in
1867, $7,024,667 in 1868; from insurance compa-
nies $1,936,954 in 1866, $1,889,488 in 1867,
$1,894,335 in 1868 ; from telegraph compa-
nies $308,438, in 1866, $239,595 in 1867,
$214,699 in 1868 ; from express companies
$645,769 in 1866, $558,359 in 1867, $671,590 in
1868; from revenue stamps $15,044,373 in 1866.
$16,094,718 in 1867, $14,852,252 in 1868 ; from
legacies and successions $1168,766 in 1866,
$1,861,429 iu 1867, $2,813,-i 52 in 1868; from in-
comes $60,894,136 in 1866, $57,040,641 in 1867,
1;39,027,611 in 1868 ; from " articles in ache line
4A" $1,692,792 in 1866, $2.116,495 in 1867,
$1,134,106 in 1868; from special taxes $18015,743
in 1866, $18,103,616
in 1867, $15,966,313 in 1868;
from cotton $18.409,655 in 1866, $23,762,079 in
1867, $22,500,948 in 1868 ; from cigars, $3,476,237
in 1866, $3,661,984 in 1867, $2.951,765 in 1868;
from tobacco $12,339,922 in 1866, $15,245,478 in
1867, $14,974,108 in 1868 • from fermented liquors
$1,515,140 in 1860, $5,819,349 in 1867, $5,685,644
in 1868 ; on distilled spirits and brandy $29,482,078
in 1866, $29,164,409 in 186 f, and $14,200,731 in
1868. Tbe Commissioner felicitates himself on
the increase in receipts from legacies and succes-
sions. Of distilled spirits he says-" The falling
off of receipts in 1 868 resulted in some degree from
the general expectation that the duty would be re-
duced, and the consequent unwillingness to
withdraw spirits from bond at the higher rate,
but mainly from the frauds which made such
reduction indispensably necessary. The amount
of spirits in bonded warehouses on the Ist of
July, 1866, was 6,081,551 gallons ; in 1867,
17,887,272 gillons • iu 1868, 27,278,420 gallons."
The expenses of collecting the revenue for 1868
were in detail as follows :-Compensation and ex-
penses to assessors and assistant assessors, $5,181,179;
compensation and expenses to c011ect0r5,52,262,231;
superintendents of exports, $20,385 ; revenue agents
$61,210 ; special agents to this office, $94,650 ;
revenue inspectors, $374,518 ; officers and clerks of
this bureau, $316769 ; stamps and cotton tags,
$139,365; other incidental expenses of this office,
$71,349 ; commissions on sale of stamps, $805,638;
making a total of $6,327,301, against $8,222,686
for 1867, and $7,689,700 for 1866. The pay of
assistant assessors has been increased from $4 to $5
a day. There are also a larger number of special
agents. The number of assistant assessors Nov. 1,
1867, was 3,180. There ara now but 2,284. For
1866 the expenses were $2.49 per hundred of net
collections, and $2.47 per hundred of gross collec-
tions ; for 1867, $3.41 per hundred of net, and
$3.38 per hundred of gross • for 1868, $4.94 per
hundred of net, and $4.88 per hundred of
gross. The commissioner seeks to show that this
increase has been unavoidable, the expenses re-
maining much the same, while the receipts have
been diminished by the reduction of taxation.
The amounts deposited bycollectors for four months
of the fiscal year 1869 (July 1, 1868, to June 30,
1869), compares as follows with those of previous
years :-July, $16,989,650, against $24,734,656 in
1868, and $27,079,103 in 1867; Aug., $13,900,396,
against $17,848,051 in 1868, and $38,043,341 in
1867; September, $9,760,796, against $13,183,607
in 1868, and $33,714,719 in 1867 ; October,
$10,092,335, against $14,486,636 in 1868, and
$26,414,430 in 1867. of the falling off in these
four months as between 1869 and 1867 $35,097,838
was on income. There has also been the repeal of
the tax on manufactures. Five thousand three hun-
dred and five suits were brought in Federal courts
during 1868, 2,294 being in rent. • 1,981 indict-
ments were found and filed, and 1,030 other pro-
ceedings in personant. Judgments were recovered in
1,261 cases of proceedings for forfeiture, and 749
convictions obtained on indictment (some includ-•
ing more than one person) ; 2,532 suits were de-
cided for the United States, and 382 against; 624
were settled or dismissed-2,905 still pending ;
$741,797 was recovered on judgments. Proceeds
of forfeitures paid into court-$1,136,151. The
commissioner finds that the rule prohibiting pay-
ment of expenses incurred by judges sitting outside
their own districts has worked ill. lie also thinks
that district attorneys should be paid more liberally
for convictions. The number of cases compromised
has been 536. From these parties was received
$1,154,027. The remodelling of distilleries to con-
form to the law and the regulations, and the erec-
tion of distillery warehouses, have been the occa-
sion of great expense and delay to their proprietors,
while the survey of distilleries, the procurement
and distribution of stamps, the preparation of forms
and regulations, and the greatly increased corres-
pondence consequent upon the inauguration of the
new law, has occasioned a great amount of labour,
from which the results have not yet appeared.
The number of distilleries registered is 1,990. The
plans of 316 have been received and filed, none
of them from the Pacific coast. Distillery ware-
houses have been established to the number of
459, and 204 distilleries are in operation, with
an aggregate daily capacity of 227,758 gallons.
The number of class B warehouses on the Ist day
of July last was 779. At present the number is 172.
"The statute now in operation contains many im-
provements upon that of 1866, is ful:er and more de-
finite in its exactions, places the distilleries and ti eir
operations more completely in the hands of the Go-
vernment, and is more rigorous in its punishment of
offenders, but its successful operation after all must
depend upon the vigilance and fidelity of the local

officers." The work of supplying regulation met
has been necessarily slow, but is now going
for-
ward satisfactorily. Under the authority of the 11'
section of the Act of July 28, 1866, the Secrets
of the Treasury suspended until January 1718:,
.
•
the collection of the direct tax in the States herctO
fore in insurrection, and a like extension until Jan'
1, 1869, was authorized by the joint resolutlai't;
of July 23, 1868. The loyal States, with the singly
exception of Delaware, assumed the amounts ar.,:
portioned them, and paid the same from their treP,
thisseries. The total amount of tax apportioned
11 insurrectionary States was $5,153,981. rse
there have been collected $2,270,608, at an exPe-rs.
of $243,451, exclusive of salaries of Commiss„ii,cgoeoo,
The uncollected tax, amounting to nearlys3,ou°,.: the
is a lien upon all the real estate upon which see
same is assessable. The Commissioner PoP°..l
that the assumption by the States be permitted anul,
encouraged by a premium. The Commissiotheo
complains that every session of Congress, since
nue
formation of his bureau, has passed a revenge
Act ; and that there are' already twenty-10'0g
them. Such continual legislation is embarras' also
alike to the people and the department. Ile
ro.
suggests a codification of the enactments mai°f to
The Commissioner thinks the power given hit" be
refund taxes erroneously assessed ought t°d of
limited as to time. He recommends the Per' 03
fifteen months. The Commissioner reconinleto•
that the time set when the use of stamps ~°11,%.
bacco shall begin (January 1, 1869) should°feet
tended, as it will not be possible for dealers to cot
off their unstampel stock by that time, on ac,c°,,jog
of the delay of the Government in not furn's,;Or
the stamps until November 23. The Commiss7e-r3i
finds that the attempt to collect taxes on bee d 3
sales by means of stamps is a failure. lie reconline
a return to the former plan of monthly
In assessing taxes upon legacies and .successltbe
it frequently becomes necessary to determine the
value of life estates and annuities for life. J-ci the
British laws imposing such taxes one table fixes be
expectancy of life. Such a provision ought ',joy,
made with us to prevent disputes and ling' of
Deputies, when acting as collectors, cannot °env
receive pay in either office. At the adjourns'
of Congress, March, 1867,• there were 67 der fa
acting as collectors. Provision should be in
paying them and for meeting similar exigeoc47t of
future. Mr. Rollins recommends that the the
July, 1866, providing a summary process for of
eollectiowes
sale by collectors, without decree or forfeiture.ofii
goods not exceeding $3OO in value, seized fern to
Lion of the revenue laws, should ba extent,d
cover goods of a greater value, and to those -iiyso.
under every revenue law, instead of that °f ed to
only. By law supervisors are to be assiel dis-
districts composed of one or more judicl3- hieh
tricts. This arrangement has nothing in " the
answers to the necessities of the service se net.
Commissioner should be allowed to assign 511"001'
visors to districts composed of one or 01°r'
lecdon districts, at h:s discretion. As it 1' et
there is a great wa:Ae of force. The Catnnuss'over
recommends that receipts given for amounts The
$2O shall no longer require revenue stanTs• d the
revenue yielded is small, the vexation great, arioefe
violations innumerable, The Commissioner re civil
his urgent appeal for the establishment of 3pities,
service. He also believes that all the great v„tioe
colleL;vith
some of which now consist of several
districts, could be thrown into single districts, tie
a great saving in expense, and with act:%,'opec'
to the revenue. As it is now the severity of 'frog'
tors is unequal, and rogues have only to nwv,ereve;
one street to another to get under a different
nue regime. The same cause embarrasses evelY,isio%s
process for the enforcement of the penal pr°`k. antf
of the statutes The districts of New I°r„lii be
Philadelphia, however, if consolidated, sh%t
allowed a grade of officers between the Prese-essorS
sessor and assistant assessor. Five deputy of
in New York and Brooklyn, under the dirgeft ot
the single assessor, would supply the place °I Pr
assessors, whose offices would be abolisheo,;.videa
the district of Philadelphia, which is now &voila
into five districts, two intermediate officers l }lie
be found sufficient. The Commissioner closes„.t
the
his report with an urgent recommendation that
internal revenue be erected into a separate "%ce-
ment. This Mr. Rollins urges with the more
dom, as he is himself retiring from the office'

THE NAVY. giVel
The report of Secretary Welles of the nay.' floo
the total number of vessels of all description% re,
in the service at 206, carrying 1,743 gtl,,vgg' gtlos.
duction during the year of 32 vessels and 14',,-01301.4
The character of the vessels is divided--iron
52, 199 guns ; screw steamers 95, 935 guns ; P 411
wheels 28, 199 guns ; and sailing vessels 31: ice 14
guns. The number of vessels in cruising ser'r, 51'
35, and laid up, repairing, and fitting for Oleo'
The organization of the squadrons remains e:010.
tially the same as when the last report Wall.-„Oe
The European squadron of five vessels and 66 pen'
is temporarily in charge of Commodore A•
nook, hut Admiral Willi tin Radford has be 0,
pointed to its command, iu place of Admiral t otiei
Earragut, placed on waiting orders. The "1,00/
squadron, of 9 vessels and 82 guns, is in eefjoiti"
of Admiral S. C. Rowan, in place of Asapanci
Henry 11. Bell, who was drowned at Osaka' 0301;
January 11. Admiral H. K. Hoff is in conlod
of the North Atlantic squadron of 6 vessels oh;
guns, in place of Admiral James S. Palmer'tner
died of yellow fever at St. Thomas, Dec
The South Atlantic squadron of 5 vessels, Oleo la'
49 guns, is under command of Admiral GParsciusci.'
Davis, and of the North and South Paella° Aevol
rons little report is made. The SecretarY Au'dcair „
much space in his report to an account of .t)ci thi
Farragut's tour to the European capitals, avvitl4:
action of the Asiatic squadron and the ilecelotel
a strong force in the Japanese and Chinese «` pay'
to protect our citizens and commerce.
„Doh
force is now in an efficient condition, ty", iv
duced from last year, and it is probable that goolef
be still further diminished during the Year t Tice.
as can be done with benefit to the public sar
°
A FRESH LETTER BY MR. LINCOLIC------orefe'lli
io"
many letters wrttten by Mr. Lincoln which are here ,
00
preserved by those who now hold them. There is
soWOer
the hands of a mechanic of Washington, which%e
prizes as highly as any State paper bearing the P-
at tb~
nature. This mechanic held the place of carpoete.us la 1).10
White House. Young Tad Lincoln was quite a gevibeitig hie
way, and very fond of the use of tools. One clitieVet-of
great need of a piece of board, which he did net I;,iedgieo-r
carpenter would give him, and having some ke° 0,0 oPei
the influence of his father's name, he went for eogsg
Mr. Lincoln heard Tad's plans of the work he vie6tel lbej
upon, and the necessity for aboard to complete it, "f bcoro
wrote on a scrap of paper—" If , you have a Pieee,,)
to spare, please let Tad have it.—A. LiNcoLS•
armed Tad got the board, and the carpenter an orcier,d
which he now refuses to part.
notO r
Miss Elwood, the professional skater, is an to r
at the Buffalo Rink to give an exhibition, " dressed
present Mercury."
Srterife
LADYERTISEMENT.]—Ayoid Medicines • they alv„itgille'd,-0-„.
chronic complaints: but Du Barry's delicious o°-
Revalenta Arabica Food, which yields three dines erel0;01101
ment of the best meat, saves 50 times its cost in other s,
and invariably restores perfect digestion, strong nerciall- v"
lungs, healthy liver, pure blood, refreshing sieeP' blsorc
regularity, anti energy to the most disordered or wife% reoOu'
extract a few oat of 68,000 cures;—" The Pope's wit 0,
00,
by Du Barry's Food. Cure No. 68,413. "Rome, J 14.111 6011,
—The health of the Holy Father is excellent, especilf eottioe'
abandoning all other remedies, he has confined hinisecoOpees
to Du Barry's Revalenta Arabica Food. of which ir.„,ly %co'
a plateful at every meal. It has produced a surpri.sillis collo
Mal effect on his health, and his Holiness cannot praT, lifer
lent food too highly." From the "Gazette du Midi,ll.l Years
No. 58,216, of the Marchioness de Brehan, of seVeillo,lo'
apd
complaint, wasting away, debility, nervousness, vo
palpitation all over, bad digestion, constant slee ores /11; „Ili
the most intolerable nervous agitation.." Cure Ii•- a,7ll:fro
Stuart de Decies, Lord Lieutenant of Waterford, r" yea ow
dyspepsia. No. 49,832: " Fifty years' indescribable %mei 1.10:
dyspepsia, nervousness, asthma, cough, constipatie, boo ego,
spasms, sickness, and vomiting.—Maria Job'. f3O 00;
46,270: Mr. James Roberts, of Frimley, Surrey,
o,°olleot'oel'i
diseased lungs, spitting of blood, liver deratio, the trios
partial deafness. Important Caution.—Beware 0.1 b,Ni )iod
unsavoury and more than sloppy imitations to yviof, attoo
authority, Baron Liebig's name is most audacious 110.;cifOC.0
In tins, at Is. lid. ; 1 lb. 2s. 9d.; 2 lbs. 48. 6d. ; S,IInDICA for ,„0
225. ;24 lbs., 40s.—Also Du BARRY'S REYALEN TA 15-.'; Isi'S
LATE POWDER is packed in tin canisters; for 12 Var." for 56.56
cups at 3s. 6d., for 48 cups at fis., for 288 cups at 01'0,
at 55s.—being about one penny per cup. The 300•_, pos
jo
are sent free of carriage in England on receipt ut..4stree,
Orden—BAßßY DU BARRY and Co., No. 77, Beget'
don; and all Grocers and Chemists.
de,
Births.
ale 121°'
CONSTABLE—On the 22d inst ,at Wallace Or,„notit
Bedford, the wife of Lieut.:Colonel C. frO,
a son A 000'
WEBBER— inst.,
On the 24th at Torquay,
C. Webber, of a son. the "
WILSON—On the 24th inst., at 19, Milbank-re yr,
of Rd. Wilson, Esq., of a daughter.
Marriages. 0
li' •
BARCLAY—WYATT -- On the 23d inst., at,
Brif kV 0
Livingstone, third son of J. P. Barclay, DEcli;ter
Market, Suffolk, to Emily, youngest Bang
late Charles Wyatt, Esq. Affirfi,
!
iiaY
TARVER—WORNC3I On the 25th inst., at 5,(*)
the-Fields, Edward John Tarver, Esq., "
rist, eldest daughter of Ralph N.Worn °
National Gallery.
„soil
Deaths. gourd,
LIODGSON—On the 25:11 inst., Walter E',, olgo
110
Esq., of South Nor wood-hill, and the Ban'
aged 62.
J. W. Oor
Bvg-
HORNBY—On the 26th inst., at Dalston,
Esq., aged 64.
SHORT- On the 25th inst., at 64 , St. ,:b8
wick-square, /day° w Short, Esq., aged Lotlg-'nf
TOLLEMACIIE—On the 24th inst., at Tilstoinu,bter -
shire, Lady Emma Tollemache, second a" 0
late Earl of Galloway, aged 28.
Georg
9
London : Printed and Pablished by WiLLI.-:010, ity 0
of No. 112, Strand, Printer, at Tan SUN QOa
Strand, in the Precinct of the So vim in
Middlesex.- Wednesday, January 27, 1849.