Year: 1871

extent Of $S8057, ,126 80 during the year, and
/ by the negotiation of National bonds at 9
lower rate of interest," the interest on the pub
Nc debt has been 20 far diminished that now
the sum to he raised for interest account IL
nearly seventeen million of dollars less than
on the LIST Of March, 1850. 1t was highly
desirable that this rapid dimunition should
take place. both to strengthen the credit oi
the country and to convince its citizens Of
their entire ability to meet every dollar o
liability without bankrupting them. But in
ends. of the rapid development of the rcsour
ces OF the country, its increasing ability tc
meet the large demands, and the amount
already paid, it is not desirable that the pres
ent resources of the country should be taxed
in order to continue this rapid payment.
l therefore recommend q modification oi
| both the Tariff and Internal Tax laws.
recommend that all taxes from internal sources
he abolished, except those on spirituous, win.
GUS and malt liquors, tobacco in its vari Jus
! forms, and from stamps.


In readjusting the tariff, suggest that q
careful estimate be made of the amount OF
surplus revenue collected under tho present
laws, after providing for the current expenses
Of the Government, the interest account, and
o Sinking Fund, and that this surplus be re-
| duced in such manner as to afford the great
est relief to the greatest number


There are many articles not produced at
home, such as medicines compounded, from
which very little revenue is derived but which
enter into general use. All such articles l
recommend to be placed on the free list
should a further reduction prove advisable,
would then recommend that it be made upon
those articles which can bear it without dis
turbing home production, or reducing the
wages of American labor. l have not en-
tered into figures, because to do 80 would be
to repeat all that will he laid before you in
the report of the Secretary of the Treasury.


The present laws for collecting revenues
pay the collectors of customs small salaries
but provide for shares in all seizures, which,
at the principal ports of entry particularly,
raise the compensation of those officials to
large sum. 1t has always seemed to ME as if
this system must at times work perniciously !;
it holds out inducements to dishonest men,
should such get possession of those offices, to
be lax in their scrutiny of goods entered, to
enable them finally to make large seizures.
Your at .ention is respectfully invited to this
subject.


The continued fluctuations in the value of
gold, compared with the national currency,
has most damaging effect upon the increase
and development of the country, in keeping
up prices of all articles necessary in every
day life it fosters a spirit of gambling, pre-
judicial alike to national morals and national
finances. If the question can be met as to
how to get a fixed value to our currency-that
value constantly and uniformly approaching
par with specie-a very desirable object would
be gained.


For the operations Of the army in the past
year. the expense of maintaining it, the esti-
mates for the ensuing year. and for continuing
the sea coast and other Improvements, under
the supervision of the War Department,
refer you to the accompanying report of the
Secretary of War. l call your attention to
the provisions of the Act of Congress. ap-
proved March 3d. 1869. which discontinues
promotion in the Staff Corps of the Army
until provided tor by law. recommend that
the number of officers in each grade of Staff
Corps be fixed. and that whenever the mum.
Der, in any one grade. falls below the num-
Der so fixed, that the vacancy may he filed
by proclamation from the grade below also
recommend that when the office Of Chief of
Corps becomes vacant. the place may be filled
by selection from the Corps in which the va
cancy exists


NAVAL DEPARTMENT.


The report of the Secretary of the Navy
shows an improvement in the numLcr and ef-
ficiency of the naval force, without material
increase of the expense of supporting it. This
S due to the policy adopted, and is being ex-
tended as far as our material will admit, of
using smaller vessels as cruisers on the several
stations of the United States. We have been
enabled to occupy at once large extent of
cruising ground, to visit more frequently the
ports where the presence of our flag is desira-
BILE, and generally to discharge more efficiently
the appropriate duties of the navy in time of
peace without exceeding the number of men
or expenditures authorized by law. During
the past year the navy has, in addition to its
regular service, supplied the men and officers
for the vessels Of the coast survey, and c0mplet
ed the surveys authorized by Congress, OF the
stbmuses Of Darien and Tehauntepcc, and un-
der like authority has sent out an expedition,
completely furnished and equipped, to explore
the unknown ocean of the north. The sug-
gestion of the report as to the necessity for in
creasng and improving the material Of the
navy, and the plan recommended for reducing
the personnel Of the service to peace stand
ard by the gradual abolition of certain grades
Of officers, the reduction of others, and the
employment of some in the service of the
commercial marine, are all to be considered.
and deserve the thoughtful attention Of Con.
gress. also recommend that all promotions
in the navy above the rank of Captain shall
he by selection instead of by seniority. Thi.
course will secure in the higher grades greater
efficiency and hold out an incentive to young
officers to improve themselves in the knowledge
Of their profession. The present cost of main
tanning the navy, the cost as compared with
that of the proceeding year, and the estimates
of the eusuing year, are contained in the ac-
companying report Of the Secretary Of the
Navy.


POSTAL AFFAIRS.





The enlarged receipts of the Postoflicc, as is
shown by the accompanying report of the
Postmaster General, exhibits a gratifying in
crease in that branch OF the public service.
1t is an index Of the growth of education and
Of the prosperity of the people-two elements
highly conducive to the vigor and stability of
a republic. With vast territory like ours,
much of il sparsely populated, but all rcquii-
ing the services of the mail, it is not At pres
ent to be expected that this department can be
made self-sustaining, but a gradual approach
to this end, from year to year, is confidently
relied on, and the day is not far distan: when
the PostoGice Department Of the Government
will prove much greater blessing to the whole
people than il is now. The suggestion Of the
Postmaster General for improvements in the