The New York herald., 1879-11-30

The amount due the sinking fund for tho year was
$50. .955, GOA g. leaving deficiency on this account
of $40. 1903 TO-
RESUMPTION AND REPEAL THE LEGAL TENDER
CLAUSE.
"It is made the duty OF this department" says the
Secretary. "to maintain resumption. and for this
purpose. in addition to the use of surplus revenue
and the fund for resumption purposes, the Secro-
tary Is authorized to ISSUE sell and dispose of. at
not less than pair In coin. either four, four and
half or nve per cent bonds Of the description
set out In the Refunding act approved July IA.
1870" To avoid all uncertainties the report
recommends that the resumption fund be specifically
apart for the redemption Of United States notes,
and that the notes redeemed shall only be issued in
exchange or for the purchase of coin bullion In
urging the repeal of the legal tender clause the Sec
reary invites consideration to the question expe
diency. and points out at length the many reasons
why such course should be adopted. In arguing
this subject the report says-
The government derives an advantage In circulat-
ing its notes without interest, snd tho people prefer
such notes to coin money for their convenience in
This mutual advantage may be secured without the
exercise OF questionable power, nor need incon
venence arise from the repeal OF the legal tender
clause to future contracts. Contracting parties
may stipulate for either gold or silver coin
rent money. In the absence or on express stipula-
tion for coin. the reasonable presumption
would exist that the parties contemplated
payment in current money. and such presumption
might properly be declared by law and the contract
enforced accordingly The Secretary, therefore re.
spectfully submits to Congress whether the legal
tender clause should not now be repealed as to all
future contracts and parties be left to stipulae the
mode OF payment United States notes should still
be receivable for oil dues to the government they
should be promptly redeemed on demand and ample
provision made to secure such redemption.
THE NATIONAL BANKS.
The number OF banks in operation October 2 of
tho present year, according to the report of the
Comptroller OF the Currency. was 2,O4s, and the
aggregate capital. $4 O67 365 surplus STA 528
United States Coin cersncstes ISL Is; iesa
tender notes. including United states certificates,
s9S97a. .44e loans. sses.olsio7. The total circua
ton outstanding on November was 1881. .1S1 ,41S.
The banks in the aggregate have kept
stantly on hand ~ reserves nearly one-third
outstanding. which. together with the coin 10 much
in excess OF the reserves required by law. They
have held security for their circulating notes and
for government deposits and other purposes more
than one-afth Of tho interest,bearing debt of the
IN inc os ss
tion has been made without failure Or
delay at their expense. "The advantages, says the
report "of this system over any system of banks
hitherto devised are that their circulating notes arc
secured beyond peradventuro Of loss. they are of
universal credit In the country wherever issued,
they perfectly protected from counterfeit
ing. they equalize exchanges between distant parts
OF tho country. they are promptly redeemed on de-
mand at one common place. the banks subject to
strict and veilant surveillance by independent
officers OF the government their condition is fre-
quently made known to the public, and they
tribute very large percentage CT their profits In
existence of sixteen years. through aud periods
OF great imitation and great depression produced
such results, may fairly appeal for the confidence
and support OF Congress.
CUSTOMS AND SUGAR DUTIES
Tho disbursements for collecting the revenue
from customs for expenses incurred within the fol-
lowing fiscal years have been follows:--In 1877,
sG.3Ot.27y 81; In 1878. s5.525.7s7 80: in 1879.
s5.ls5.71g o. This shows reduction for 1873 over
nf n ra1nr In. fp~1
1878 OF $4o0os ~. making a total SAVING for
the two years Of ssis.5oO a. The general appraiser
prasements demanded since the 3Oth of June last
tho total number for the fiscal year at that
port will be likely to reach 1000. The action of tho
local appraisers has. however. been generally sus-
tanned on the reapprnIsements. bat the embarrass-
inents resulting therefrom show that some method
should be adopted by which such questions may bo
now IN force. Ono method suggested is tho
adoption of specific duties in place of ad
valorem. This change could, Il is believed.
be safely adopted. with proper limitations, in
regard to Kid gloves. piece silk goods. piece
veivets and some other classes Of goods which
now pay an ad valorem duty. and which constitute
the chief ground OF dispute as to value between tho
government and the importers. Another plan would
be to permit the government, In Of an UNDER
valuation to take tho goods At the invoice price.
with reasonable sum added for freight and other
expenses and profit and then sale OF the goods
to DO made ON government account. By treaty be-
tween France aud Italy. made some years since It
provided that goods ascertained by inspection
to be undervalued to the extent OF Ave per cent
importer receiving his own valuation for tho goods
together with q profit OF Ave per cent. similar
plan adopted In England had the effect of breaking
up this system OF undervaiuation.
The difficulties attendant upon tho collection of
duties ON sugar under the Dutch color standard,
which were alluded TO In the last report OF this de-
psrtment, continued during the past year. Sugar
continued to be imported which had either beon
stances or which Sy tho the process Of manufacture
had been so radically changed to produce sugars
OF the highest saccharne strength, while possess-
IN nvosln stf sAl.r had IA ~
Dutch standard. II has been held by the courts
that Congress. In imposing the duty upon
sugars according to their color, meant the
true color OF the sugar which is developed by the
ordinary process Of manufacture. and which indi-
Gates the degree OF perfection to which the process
OF clarihcation has been carried. by the adoption
OF regulations at the port of New York respect
ing the Weighing Of sugar. the difference between
tho invoice weight and the actual weight a. returned
by the government weighcrs has been reduced from