The Sun.
London, England, 1860-12-19 00:00:00

FINANCES.

In my first annual Message I promised to employ my
best exertions, in co-operation with Congress, to reduce
the expenditures of the Government within the limits of,
a wise and judicious economy. An overflowing treasury
had produced habits of prodigality and extrava-
gance which could only be gradually corrected. The
work required both time and patience. I applied my-
self diligently to this task from the beginning, and was
aided by the able and energetic efforts of ilte Heads of the
different Executive Departments. The resuft of our labours
in this good cause did not appear in the sum total of our
expenditures for the first two years, mainly in consequence
of the extraordinary expenditure necessarily incurre t in the
Utah expedition, and the very large amount of the contin-
gent expenses of Congress during this period. These
greatly exceeded the pay and mileage of the members.
For the year ending 30th June, 1858, whilst the pay and
mileage amounted to 1,490,214 dole, the contingent ex-
penses rose to 2,093,309 dole 79c, and for the year ending
30th June, 1859, whilst the pay and mileage amounted to
859,093 dols 66c, the contingent expenses amounted to
1,431,565 dole 78c. lam happy, however, to be able to in-
form you that during the last fiscal year ending on the 30th
of June, 1860, the total expenditures of the Government
in all its-branches—legislative, executive and judicial—ex-
clusive of the public debt, were reduced to the f,um of
55,402,465 dole 46c. This conclusively appears from the
books of the Treasury. In the year ending on the 30th
June, 1858, the total expenditure, exclusive of the public
debt, amounted to 71,901,129 dole 77c, and that for the
year ending 30th June, 1859, to 66,346,226 dole 13c.
Whilst the books of the Treasury show an actual expendi-
ture of 59,848,474 dols 723 for the year ending on the 30th
June, 1860, including 1,040,667 dols 71c for the contingent
expenses of Congress, there must be deducted from this
amount the sum of 4,296,009 dole 26c, with the interest
upon it of 150,000 dole, appropliated by the act of 15th
February, 1860, "for the purpose of supplying the defi-
ciency in the revenues and defraying the expenses of the
Post Office Department for the year ending the 30th of
June, one thousand eight hundred and fifty-nine." This
sum, therefore, justly chargeable to the year 1859
must be deducted from the sum of 59,848,474 dole
72c, in order to ascertain the expenditure for the year end-
ing June 30, 1860, which leaves a balance for the expendi-
tures of that year of 55,402,465 dole 46c. Thelinterest on the
I public debt, including Treasury notes for the same fiscal
year ending June 30, 1860, amounted to 3,177,314 dole 62e,
which, added to the above sum of 55,402,465 dole 46c, makes
the aggregate of 58,579,780 dols 08c.
It ought in justice to be observed that several of the es-
timates from the departments for the year ending June 30,
1860, were reduced by Congress below what was and still
is deemed computable with the public interest. Allowing
a liberal margin of 2,,500,000d01s for this reduction, and for
other causes, it may be safely asserted that the sum of
'61,000,000 dols, or at most 62,000,060 dols, is amply sufficient
to administer the government, and to pay the interest on
the public debt, unless contingent events should hereafter
render extraordinary expenditure necessary.
This result has been attained in a considerable degree by
the care exercised by the appropriate departments in entering
into public contracts. I have myself never interfered with
the award of any such contract, except in a single case
with the Colonisation Society, deeming it advisable to cast
the whole responsibility in each case on the proper head of
the department, with the general instruction that these
contracts should always be given to the lowest 'and best
bidder. It has ever been my opinion that public contracts
are not a legitimate• source of patronage to be conferred
upon personal or political favourites; but that in all such
cases a public officer is bound to act for,the Government
as a prudent individual would act for himself.
AFRICAN SLAVE TRADE, &C.
_ _

It is with great satisfaction I communicate the fact that,
since the date of my last annual message, not a single slave
has been imported into the United States in violation of the
laws prohibiting the African slave trade. This statement
is founded upon a thorough examination and investigation
of the subject. Indeed, the spirit which prevailed some
time since among a portion of our fellow-citizens in favour
of this trade, seems to have entirely subsided:
I also congratulate you upon the public sentiment which
now exists against tie crime of setting on foot military ex-
peditions within the limits of the United States, to proceed
from thence and make war upon the people of unoffending
States, with whom we are at peace. In this respect a happy
change has been effected since the commencement of my
Administration. It surely ought to be the prayer of every
Christian and patriot, that such expeditions may never
again receive countenance in our country or depart from
our shores.

It would be a useless repetition to do more than refer,
with earnest commendation, to my former recommendations
in favour of the Pacific railroad—of the grant of power to
the President to employ the naval force in the vicinity for
the protection of the lives and property of our follow-citi-
zens passing in transit over the different Central American
routes, against sudden and lawless outbreaks and depreda-
tions; an also to protect American merchant-vessels, their
crews and cargoes, against violent and unlawful seizure and
confiscation in the ports of Mexico and the South American
republics, when these may be in a disturbed and revolu-
tionary condition. It is my settled conviction, that with-
out such a power, we do not afford that protection to those
engaged in the commerce of the country which they have
a right to demand.
ELECTION OF MEMBERS OF CONGRESS.
I again recommend to Congress the passage of a law, in
pursuance of the provisions of the Constitution, appointing
a certain day previous to the 4th March, in each year of
an odd number, for the election of representatives through-
out all the States. A similar power has already been exer-
cised, with general approbation, in the appointment of the
same day throughout the Union for holding the election of
electors for President and Vice-President of the United
States. My attention was earnestly directed to this subject
from the fact that the 35th Congress terminated on the 3d
March, •1859, without making the necessary appropriation
for the service of the Post-office Department. I was then
forced tp consider the best remedy for this omission, and an
immediate call of the present Congress was the natural
resort:

Upon inquiry, however, I ascertained that 15 out of the
33 States composing the Confederacy were without repro.:
sentatives, and that, consequently, these 15 States would be
disfranchised by such a call. These 15 States will be in the
same condition ou. the 4th March next. Ten of them cannot
elect representatives, according to existing State laws, until
different periods, extending from the beginning of August
next until the months of October and November.

In my last message I gave warning that, in a time of
sudden and alarming danger, the salvation of our institu-
tions might depend upon the power of the President imme-
diately to assemble a full Congress to meet the emergency,

TARIFF.
It is now quite evident that the financial necessities of the
Government will require a modification of the tariff during
your present session for the purpose of increasing the re-
venue. In this aspect I desire to reiterate the recommenda-
tion contained in my last two annual messages, in favour of
imposing specific instead of ad valorem ditties on all im-
s specific
duties
of
p,orted articles to which these can be properly applied. From
long observation and experience I am convinced that
duties are necessary, both to protect the revenue and
to secure to our manufacturing interests that amount
incidental encouragement which unavoidably results from
a revenue tariff.
upon
alln.
the othercannot
re revenue,
commercialei
As an abstract proposition it may be admitted that
valorem duties would, in theory, be the most just and equal.ad
But if the experience of this and
uopf
uaes,setahseend
nations has demonstrated that such duties
and collected without great frauds
it is the part of wisdom to resort to specific duties . Indeed
from the very nature of an act valorem duty, this must be
the result. Under it the inevitable consequence is, that
foreign goods will be entered at less than their true value.
The treasury
will, therefore, lose the duty on the difference
between their real and fictitious value,
and to this extent we
are defrauded.
The temptations which ad valorem duties present to a
dishonest importer are irresistible.
His object is to pass histhrough the
custom-house
at the very lowest valuation goodsnecessary to save them from
confiscation. In this he too often succeeds, in spite of the
vigilance of the revenue officers. Hence the resort to false
invoices, one for the purchaser and another for the custom-
house, and to other expedients to defraud the Government.
The honest importer produces his invoice to the collector,
stating the actual price at which he pnrchased the articles
abroad. Not Ro tll dishonest importer and the agent of the
foreign mamtraci
a very large urer. And here it may be observed that
proportion of the manufactures imported from
abroad are cosigned for sale to commission merchants who
are mere agents employed by the manufacturers.
In
_ ~.,..s. noh. cases no actual sale has bees made to ktheir
"
'"w .1.4 figele Dattnufactwor, if In Do diAlzonest, pre.