Department Reports

The report of tho Secretary of thé Treatmry on tho state of tbc nuancen for the fiscal year ICT5, ending June 30, embraces estímate of ï&elpfta inü cxpomlituror', and plans of revenu?. Up ió ÜAt date the total revenucs for Ulo year v ere $2tf8,uot).061.10, and tUo expenditures $27 4, 62a, 39-2. 84. The Becretery eetomates that the revéanos for the current ycar will i";tll short by the amount of $3T2íí5,01)0. 9i of pro vi ding for the appropriatioim ïw.ftde b'y Congrcfs. The reduction of itc public debt made iluriu the yc;r Ie bfcOWli tv) havo been $14, 'MW, 514. 84. ïiit; aecretitry tuakep an i-arueat p'ea for frugaUty ■M rifri.ï ecouonxy in üilininiwlpation, a iaithíul collectíon oí the revenue, aod the rodnotion of the cxpeujitiireB to the lowt-st point denianded by the neceesitiee of goveruuient. Upou thiw pufcject he Baya: " lacrean e of public expenditvrea in time of groat prosperity and extravagance is apcomjili-shed by u easy procens ; bv:t u oofret-pondiiiK reduction wheo the reverse cnmea cao be brought about ouly by the closept. vtilaïioc and moet deter mined resistauce to every appeal for appropriations not rcqujrod by the exietinfa; neoeeafttes of government. No appropriatiqn of money efaonkl bo made without reference to the probable aniount of manue toticcrue withiu the ycar in excyss of sadstlng ; obÜKutions and liabilities.' Tho Secretan,' stateë tbftt Htt u -.imiiuiit whicli appears upou the books Of the treasury as actually applied to tlo f.íi'.lilhg fiiud within the past ftscal year is &5,1TU.4UO. for the current fiscal year it ia eaümated that $82,140,914 must be apptted to the iuml. To mecí, this requirement a cali was made on tbe lKt day of September for $8,000,000 bíx per cent, üvetwenty bouds, and ou the 15th day of November a further cali for $5,000,000 bonds of the same vl, Tlie balance necestary to completa tbe total tmouiit for this year wiU be called from time to time in sueh inanuer aa to nnM the least dísturbanoo of the market, and it is hoped that the whole omount wlU Ih) preeeiited for payment within the year.'' The Secretary reviews the operatione oí We e-ysl dicate for ref unding tlie uationa.1 de);. He states that tbe funding of the flve 'uindred niülioii oí six per et.nt. bonda mí tilosa bearing five per ceut. interest has bttoa aeoomplished, thereby saving an annual interctit to the Govcrnniont oí fivo mülion dollars. The success whieh has attended the refumling of $178,518,300 of tUe national dtbt during the last sixteen months, with tlie steady improvement of ilm natioual credit, induces the belief that tberetoainder of the bíx per cent bondti öttn be fefümleu, within a reasonable time, iu accordance with the provisions of tlie acts of Congreso." The Socretary l-.ikes strong ground in favor of an early rcsuniption of Bpecie payments. Upoii this subject lie says: "Every branch of industry and ell elnaeefc of people aro alike interested in the feetoratiou öf a aouud and stublc circulaliuR tuedtum, the laborcr and producer do k-ws tb&n the merchant, boiidholder, and bíinker. The preeent unequal and ftuctuaüng curreney opprestseö and in jures laborera aud producers, who constitute a great. m&Jority of our people, far more thaíl it afi'ccts injuriouuly dealers ín suoney. The difference between gold aad our papor ciUTency is a margin upon w&Ach experienced money dealers do biiBineeiS) and it ík this that gives the opportunity fot auirtfiial corubiuationci nereby values ure increased op mluerd üt pkasuro. ïhe pureliawng power of the curreccy is increased or diiniuished by the iu;inipulations of }rge operator unlted for that purpoBe, and iroducerts and laborera ere often made to rtuüVr, without efíeclive powc? of Fesistauce. ReBtoration of a sound aüd unvarying curreney must brmg better relative wages with more constant employment, because the valué of labor, zb oí" thai whieh it producen, will be measured by a more certain Btandard; and, with the return of codtidence, therc ntust come acíivity. K"r?fertty, laïgeï markets, and greater dcmaP.d-, which, as hoth reaïon aml exporieniM pPOve, do not tond to lower wagst, or Uftke uniployment less eertain. " Tüe claim that ihe largo issue of inconvertible paper curreney hae been benefioial to producers is, perhaps, sufh'ciently diwprovod by reierence to the reportd of tales of Jeading artldea of produco, pucli as wheat, corn, and lprk, befcre ap.d sitice t!e isnut of hvich curreney. The ttegfc tfttet twHfthy - etaHrtica Bhow that öuch articlcr, wofe solt) ih New York during the flvo yoafs rin 1870 to 1874, inclusive, for abuut tbe saine price that theybrought in the five yeara troia 18.56 to 186), inciuBive. ' On the other hand it is equally certain-tiiat thé farmer haspaid increa9ed ptices. dtuit.g Ihe periud from 1870 to 1874, for ocultis Imponed for consuinption. urn all öf which the difference betwocn gi'd and curreney mufti be paid by the consuiuc-r, who paya in the lat ter. i'hus the producer of domcytic articks is constantly nubjected to loss in exchangiug bis producto for such articlcs &3 ooffee, ten, sugars, and cthur imported goods, which entir iuto daily conwuiuptiou. In tïis cf?nnection it should bè boriw n loind tííat a greater vlume of curfi novis tvijnired for the tranaction of business when it consi-ts of inconvertible paper, which doos uot circuíate abroad, tbau when the currency iit general use is gold, which fiows through every arlt ry of commerce. The statiaties of our foreign trade illustratc tlii prOpósition. For every imported .ntce t!ie ctinsumer must pay to the iinporter, efeides the coat in gold, inercased by bis percü age of profit, as much more as the d ffereuoe between gold and the curreney with which pay ment is made. Tuis differeuce, conimonly called the premium on gold. increases by many milJions the total amount which would otlierwite be rejiiir(d to complete all hu-ju irftusactions. " The proper office of oueronmr, wh;uUct it be geld orpftper, ifl to serve iis atuediuin of excliange for he adjuHtntpnt ot' trant" act ion b between buyers and sellerri. W hi n it in sound and atable, receivable in all parta of the coiamerciai world, the amount wJiich cttiaJJy paasis froaa hand to hund in btulnees tran saetí ons is far below the roltuae vt '-uiness. A muil! pet cent iliíTfí.í' irí a'ájustcd by the actual Iiandünffpf '"nib y. Ex&hauges are. lor the most part, made by transfers of credit through baukn. and other agencie?. "Wherever exclianges and bunnen trantiactions are conducted on the basiaof coin, and paper convertible into it, the volume wiU be regnúlted by natural causes, Money, llke merchan1Í86 will go wliere tUero ís duitland for it, and vhere sonietMofí Of vaïue can bc obtained .n exchangu for it. When the ünanc al panic i Ï857 ereated a demand for gold In tbis country, areadyand continned supply canie eteaaily from abroad to meet the Bfietttiee oí our people, and jrouglit fpeedy relief. Now, the enforced use of inconvertible paper eurrency not only obtructw the Üow of gold from abroad. but drives from the country the preoious metale ylelded by onr niinef. ''(Jood and bad currfney e.aiiu.t be rrtained ín auyüiiuLj like eqnsi firoporüopa in a country having coiuini-rual rclatinmi witli other power and pcoples. The latter wiU drive away öio farmer. Gold aud silvcr wijl flow eteadüy to those prtn tf the commercial worid wbore bujBibwi ís.tíona on the biste of au unvarying stanAaïd of values, and whero every iseue of paper is convertible iuto the precüms mctalB at the option of the holder, because they are needed there. Such ú the inevHable operution of tbc law of supiy SnQ demand; and tht: proooattfnited tód iiuutoquate huply of coin in thi country it chiefly due to this CAust-, Gold has bekome a commodity of trade, the price of which from day to day depends largely apon the will of those who have combi ;ied to control the market. Thiy presente a seriot obstmetion to all productivo induetriCB aud commerco, umi introduce.t luto boíüneRs transactious au element of un(?CTtaiutJ", wtiich often onütOefi thé most intelligent ealculatiouK, and tendfl to destroy couHilenoo. witho:U wliicli Hteie Cftn bc no real or permanent prospartty. Apparcut but Ik-titious prospt-rity has often koMWddMa teeues of irredeemable paper currency, but no renult is more certaiu to flow from a givea cause than disaster and ñnantial distress to foUotr apertod of lnfiaÜQQ of business and credit oaused by excessive issues of paper eurrency. Tüe ptüloflophy which teaches by example, as well aa tbe deductious of reasou, estabiish coBolunively that there is no effective remedy for the evil but the removal of its cause. " Tlio c. ren mst iiKH-M sttendtag Khe issue of the TJnited íitíites note uow in circulation impose upon the Government a peculiar obligation to próvido f or their spet-dy and ctrtitin redemptíon in coin. They were issxied in the exeroise of a pover which can be caJlcd into use only in atimeof mipreme neciKsity, aud were paid out for the support of an arniy eompOMd of brave and i a riotic oiuzenv who had responded to tbr, cali of lh-ir country in the hour of itsexlreme pc-ril. To Buffer u pioniite made at such ii liuit: and undcr such circunjf-'tances to be 'iish";iored by iubsqilent iii'lilïereuce or nou-peifonnaiice, would bettor than open repudiation, au'l would afffcet injuriousíy our natioual name and credit. " Itis worthy of nota that for the Ihe most part ttioeö'wlio now oppcBe Che redempüonof legal-tender not68f an ï who ak for a furuier issue and continu cd and tndeflnii i retesae of notes now .ucirculatioo, were most -ïremioun iu Uu ir opposition to such issues during the i-ivi! war. The acts authoriziug snob issues were denounced :is in violation of sound prlnoiplfifl of liuance, uot warranted by the Coustitution. Their constitutional validity was re■lstod at evory potnt, and eubjeoted to the test of judicial decisión iuaímost ovry court in ihe country, both State and national. '1 he supreine judicial triljunal of the nation upiicld the acts as nieasures of necessity in a tim; of great exigency, but it bas neither decided nor intimatod that such power niay be exeroised by Oongrem in time of public fcranquillity. Indeed it ia lairly inferable, from all the Court "bas said in the various oases in which the question has been before it, that the ipBiie of BUch notes in time of peacc is not withm the constitutional powí-r of Congress, The language and argument of ths Court leave uo reaaon to bclieve that it would sustaiu the claim oí' power to iuoreaae tbc volume of such Issues or to reipsue such as have been redeemed i:i obcdieucc to law, wh'u the public exigency no longer exitits. Those who opjfteed such Uauès at a time of supremo necessity, aud infint upon f urthor issues when the omergancy has passed away, put themBelven in ihe attitude of opposiug war msarares in the midat of war, and advocating them In a timo of profouud peace. Congress carefully oónflned the operation of the act to the period of Bftcessity by authorizing 'the reissue from time to time, as Ihe exgencies oí the public iut'-rc-stshall require." 11 The Gtoverument ík bound, not only by economie considerations and proper regard for the intoreet of the people, bot by express aad repoated promises, to próvida f qt the reoemptton In all lts issues qf ïegal-tendiT notes. Th& original legal-tendor m-t wns rusrüod und tt-e&tód at tiiO timö of Uh ftdoptlonM o, tempore ry möMUre, iihf ?t(ï hïpüiUbl' ooly by títí e - of VÁ) whieh taxed all the itkouixch and ( nergies of the nation." After recitíng the varioua acts of Congrcsn authonzinfi the isFiie of United StateB notes, and the I drchirntuM of thfl Hupn-nm CottVt that these t 'ts should be aecepted as conclusivo of the obligation and rtuty of the Government to pnovlde for the byment in specie of all eueh iste!, the Sootemfg coutinuefc i "Thettc n?ovii4onfl Of tUe variouBttcta of Cöngrcas, which weïe pafieed ith the appfoval of tho fcxecutive, and the olear adjudicaron of the Stipreme Coürt, au welt a the plrtinest principie Of puiUiral econottiy, and tirnper regafd 5:or lbo pmmo welfare, commít the Gove! nmont (') the redciupüoa in min oï t:ie á'ótee issued under the cireunistanete bofore statcd. National faitti and honor could uot bc more distlnctly or unequivocally pledged to the performance of a plain duty. 11 In view of these solemn and repeated pledgey, it eeemB idle to resort to the conniderat'on of clcDWitury principies of linancn to prove the evils of jiu irreil ■cuialnc pjtper curreney. In the i'nee of sueh plrdgep, disregard Of whirti WWÖd bring uatiouaí dishonori RújiefeíiolU, ÍL not irreparable in,iiT- Ü3 ale jubile credit, it eau hardly be necessary lö diHcuKS questions of expediency, or to point out the ills which the experience of the civilized world shows munt follow a violation of well-known lawa of po.itieal cconomy. " It is anioug the lïrst and most important fnuctioiiK of Governuient to give to ils people a Bound and stable currcucy, having a nxed reiation to the standard of ralnca in general use among nations. The truc matter with whieh (loveviiiiunt has fco do is not so rnuch a qucBtion of volume a? of RoundurnR and ptability of the currenry. When it has estttb= liched a cmrency of Algd anti. BtttbívWtie, bavinft a kni'wn relfttjon to tÜt tíf other powers. and für Hiskilig a unifoirm nmdiuin of excliange, Iho volume itirty and flonld pe left tobe deterniined by the wante of trad-e and bwlnww; Natural causen, aidod by individual e Hort and enterprise, will regúlate the volume of onrrttuey far more wiser and with greatcr paf ety to DiisIñfiBfl Wan acte of Congrefis iinpoeing artificial J imite, subject to increase or diininntion at évèry Beeaion. The exieÜng provisioBH of the law making Uuited Staten notes legal tender for all debte, both public and private, with certain exeeptious relating totrftnsftcMêv&Wtts Gpyernment, ís pn ar+ilïctïil barf ief to the use of goití RHcl ril ver, tendlhg not óply to provent the fiöw of gold towarrt Uiïs country, but promoting the nhipnieut abroad of our own production öf precióos metale. For this r?ason Congrcss fhould abolían the legal tender qnality of the notes, tis to all contracts made. and liabilities ariiDg after a lixed day. The firnt day of January, 1H1), being already tixed by luw MitUe time when the redemption of United Statci liotcE tlujn outstanding phall begin, it would be proper and safe to provide that puch notee t-hall uot be legal tender for coutractn made, or liabilities incurred aftcr the tirwt day of Jaiiuary, 1K77. Sucli an act woiüd not too suddenly change the value of the notes, and would not affect injurionsly either debtors or predi tore, but would remove a present obitrucllnn to the retentfon of ourgold and silverpfodüction, and creai; :i dehiaud Txít the eturn of the gold nuw abroad, thus promoting ünal rcsuüiption by preparing the country Í of it. " In furtkerance of the purpose of the act of the lat Congress to proide for the resumption of Bpecie paynients, the Secretary rocommeudn that authority be giyen Eor fundiug lbgal-tendcr notes into bon4 'JeAring a low rate of interest. Such innuÏH Mhould run for a longer period f time tliau tlione now authorizod for rcfundiug the interestbearing debt, and should be made nvailable to national banlts for depoait to secure their circulation and other liabihtics tc iho Government, and bhould bear a rate of interest eo low as not to caue too ranid absorition of the notes. It seems probable that n bond boariug interest at the rate of f our per cent. would invite the funding of n. Buftident amount of tegsltotidr nntes to ÏPseeii kn&tef lally the buïü of gold Which, in the ábnent-e of ffOch provisión, must be aecumulated in tüe treasury by the Ist of January, 1879, to carry out the impera tl Ve refuirements of the act of Jan. 14, löTiï. If it be apprehended that anthority to tbe öecrotary to fuufí an unlimited amount of noteB might lead to too suddeii contraction of the currency, Congress oould limit the amount to be fuuded in any given period of time. The procesa beiitg in uo eensc compulsory as to the holders ot Uuited States notes, and the rate of interest on the bonds being made low, it 1 not probable that currency whieh could ftad rroüttible employment would be pfeaented fo rfedetüptien iü such bondfl, Only the eïcefli of notes ab'ovB the needs of byeineBs would seek such conversión. AutUoHty tothe Secretary of the Treasury to redeem nnd cancel two milHon of tender notes per month by this procees would greatly facilítate redemption at the time now tixed by law, and besides would have tlie advantage of publicity as to the esayt iihioiint to be withdrftwn in ány gïveh hibnth. Joi?dB IPsUed ïor IUih purpoye sliould bö of the denobiination of fifty and one hundred dollars, and any multiple thet-eof, ín order to Ineet the convenience of all classes of holders of United States notes. The faitli of the Government, now stftnde pledged to resumption on and alt t Jáhiiary 1. 1879, and to the iiul redemption and removal froi the. culretlcy of the country of the legaltender notes as fast as they phall be presented for redemption, acCording to the provisión b of the act of January 14, 1875. To resume on the lst of January, 187'J, without further Jcgislation, would require ihe accumulation of a líirge amount of oïd in the Treasury in order to avert the posfibility of failure of the plan. Such an amount of gold can be procured with ditflctilty, aüd nut witliout more or lees eiabatt-aseiDg effect upon the traüe and comtnerce of onr own and other counIries. The present abundance and cheapness of both currency and capital presenta a favorable opportunity for the withdrawal and redemption of a considerable part of the outstanding lfegaMender notes, thereby makiag easy and efiectual the redentptioti iiow pledged. Such withdrawal of legaitender notes, tlius dispensiug with the necessity for accunfhlating gold in the treaeury in proportion to the amount withdrawn, would tend to appreciate those remaiuing outntanding and make it eaeifcr to protect and keep in circulation ihe pilver coin now authorized to be iesu'd. "The act lust rfer?ed to íb &b c-.pfese recoSuition of tn atity and óbligalioh of the Governmtht to resume specie payment at the day therein namcd ; and, ilowever widely dift'erent may be the views of the intelligent persons upon the means adopted by Congress, it isgratifying to know that the end nought to be reacliod aaw met tbe cenonrrence of the countfy, and that ;t majority of the f eoplo, wtierever the matter bas been pubJiely and fully discutsed, have pígnifíed their approval of the deteimiuation of Congress to be faithful to its pledgen, and to relieve theni of the ills of an itredeemable paper currency, " The act ín question not only malíes expresa provisions for resumption at a üxed date, but comna:ts tbe Government to the use of all neb mcans as may be luediul o that ','inl. If fixwiiene sfeall show tllat tïe Jfifeatifl ï'rovided by Coögfess heed tobe aupplemented by ."urther legislation for the eauicr and more certaiu accomplishment of the end, it must bo aesunied that Congress will not sulïer the great purpose to be impeded for want of Kuch additional lcslation. The ct confers Jai'ge pOwers on tne Secretar' of tbe Treasury, toucbirig the issue of ln ted State? bonds for the purpobe of procuring the Biipply of gold neceseary to execute Buch of its provisions as go into inimediote operation, and to provide for the, redemption in gold of United States notes outstanding on and alter tbe Int of Jauuary, 1879. In this respect ihe power conferred on the Secretary is ampie ; but ii , for any caufe, it shonM be t'nund impracticable to ftccuifjulPio iii tlie TiTfisury a suffieielit atiiouiit of gold to cafry out tlie provisions of the at;t, the öec retar' is left without the choice of other means to accompiibh the end. It may, pei-haps, be doubted whether tbe procefs of accumulating r lurge amount of gold by a iven time conid o on without meetinti oppoejition from the financial powers of tbe world. It is tafe to ay that so large an amount of gold as would be required to carry out the purpoae and direction of the act cannot be suddmly acquirod. It can be done only by gradual piocesBefi, al by taking advantage of favorable conditions of the mouey nnirket from time to time. "Thfilowsof intorej4 on lttrgi; sums Uoardeil in the Treasury fot a cutisideïable period in advance of January, 1879, is a eOnsiieration not to be diaregarJed, altbongh it phould not be iermitted to oufcweigh the beneftts to result from full and complete execution of tbe act. ' Tbe Secretary regretp that tbc couditíon af the Treasury bas been such at to reuder it necessai y to make sales of gold coin from time to time to meet current expendit-ures payable in currency. Buch sales have been made in New York City, upou public not cc, in oocordaace with tlie plan preyioasly ndopted, and have been limited from month to montli to the amount necessary to keep on hand a sufliciency of currency to meet probable demanda upon tbe Treasury under cxiñricR Upproprl ations. ïf, in the deeiro of tbe 8ecret;,ry to retiiin in the Trcasury, so far as practicable, the gold received from eustc-niu, and fales are dironHuiied whenevtr tbc balance of currency ín the Treasury is nulncient to met-t currency paymenta.'' 'Ihe Secretary saya that "banking having been male irce. by the act of the last Congres, without reBtriction aH to the amount of circulatiug notes that may be itsaued to any part of tbe country, it is believed that sucb currency will dihtribute itself ;iccording to the demando and uecessities of bueiucsb. Tbe privilege! which attacb to natiofal i ;nrt; bcing open to individuáis in all pavts of the country, capital will not be alow to ectablisb addifiional banke, or to increast; the ciirenlatiou of ihost; already in existencCi whencver and wherever tha exigencies of business ehall render it apparent tbat au inercase of circulation is dceirable. Jinlit does not Beeni i)robablc that Buch demand will arise to auy considerable extent wbile the volume of l;,ral tender notes continúes so great as to cause large unís to lie idle in commercial centers, for want oí pafe and proütable investment." "The dimininhed use of ilver coin in various European countries, and the increaping production of our iJlver mines, would appar to render the pi-tHent a very favorable time tor preeuring &uplïües of bu ilion for the manufacture of sil ver ooiu to be ueed in the redemption of tho fractíoual curreucy "So much of the act of January 14, 1875, as relates to the purehase and coinage of silver for redemptios of fractional currency, bas been put into partía! operat on, and is now buing executed as rapidly aa the exigeucies of the case wil admlt. Sinee tbc pa eage of the act, 8,243,íi42 ounces of silver buriou have been pureluued, at an average. price of 111 4-10 cents p r Ktauriard ounp. 1 bc inlxits have been put in active op?ration, ani tlie aggrepate inoimt or Bilvcr c#a now in the Treasurv is $10,000,000." Tbe report ays that " in the collection of duties apon importatioufi, two evils are chiefly opiraiive to prevent the Qovernment i'roui realiziug the full measure of reverme- ftrst, nnuggllfig, and peconclly, uudervaluation. The first general HUggestiou whiili present itseif b way of remedy for sonie of the defectfl of the present synt"m of uppraisementíi is aniireiihej in the nuinber of general appraifM-rs, to .irawn from the rankf of subordínate oíticera of reqtiiHiíe abllity and experience; and, secoudly, a cousolidatiou of cuttmis dittricts, by which minor cÜBtricts would be merged in larcr ones, tlius reducing the. sph' re of actiou of Üúa class of othVerB, and enablicg them to concéntralo their effortn to ibetter advantage." ' Rcferriu tothr esiiinuteis of roceipts and expenditurc-B for the, next fiscal ycar, and to the necee hí y . now existing tor the ar uunuution oi' gold in the Tieasurv, the Secretary again caüs the attenfoon ':i : OoneroHB to the effect of the act of 1872, repe&linR the duty on coflfc and tea In bis last anuiial ro'. port the Secretary rxircH-.i I the opinión that the ; act adniittiu these articlee to Tree entry bad been without advant-gt; to enusinmn- in this country, . but that the dutj repealed had been added" tothe : cost abroad. Substquent consideration oi the Hubject baj oonflrmed the views ht retofore expressed, i and the Sccretavy recommende reHtLM-ation oí the , duty. on tbe artides in ipicBtion. 'The tiectcÍMry allu::fw to l!i'. ntfcruy] revenu' ' fraudV, olhiKÍoij of dishonest officia e, and tli.j . vigorous uirusures tbat hae bef n taken to uring . the conBpirators io juntice. ETc ■' eout-iderd it im, portant to the future col ection of tbe ivvenue, i that a'l particB engaged in pentotant and ytte; m.itic fr.uids hall be visltrd witU peuereetJpenalties of tbc law. To tkis end iustractions har . been repeatedly given to oflloeju of interuaJ rev- enne, and otuVTs in t'ie service (il this h pirtxaent, t render all propi " the ofl'.-r-s of tb( ; Departmeut of ïnsticw in %typ proBecup of the - oasee now panding, aw■ 'iou au vniuS iebmeut of 8Ucb guiiy PY o-s have not jet UiPE , indicted. It ís doamed o'j ■ nutd} iiupojaace IL ' eiom Oí ttw úi.,-t' ni; jn waa wf$ b(fytd Umi trut, and euagcd in friuuls on Iho reveime. ehall Í be broiiht to sncedy and oondiga imiushmeut. ( Tliosc wijn. are intrusted with official duden and spoimbihtieR shmild be given to know that the Government will not dralltKhtly witli them when they prove to be guilty of corniption in office." Euportof the Secretary of War. Secretary Belltnap'H report is, cm usual, a ' very lengihy document, and npaCe permite ' O'uy n t'vi f ibstraot of ite saieiit featuroa. He ' in gratifibd to state that siuce his laat report a ! marked improvemeiit has taken place in tbe ' m orale of iho service. Tlie army ie now redneed to 25,000 men. Reeruiting was resumed in November, 1871, for the puipose of keeping up the standard nnmber, and uuder a careful i system in the seieetion of the men the elaas of 1 recruits now received is of a superior quality. 1 Tbe number Of desertions has been largely . dneed, buiig about 2,100 lom tliau during ■ the previous year, while the mnnber of re-entistments lías increased nearly threefold. Tho state of eontentinent thus shewu ; ia due, in a great meaHure, to the excellent ' tem of pay CHtiiblinhed, whieh ík now graduated by length of service, and affords tlie soldier an ' oppoitunity to deposit Iiíh gavtDgH with tbe j Oovernment and reOBtVB UlUlTIMt for the samo , iiiitil the end of Ma ternii i The Kecrctary cails atténtion to thfe fact that ; If-rge numbers of married men have been enlifltedj asd that their. presence, in the ranka i proYes a Hource of onibairüssmeut to military ' diaciplino, asitisan iujuiy to their farniltèe. He aaks for appropriate legtelation to correct UiiH growing evil. The work of care and improvemeDt of , tioual cemeteriea has been satisfactorily i formed during the year. Nine eemeteries havo been incloeed witíi wall., leaving eleven yet uuiuclon6il. The works for the defauee of our seiboard, under the Engineer Depaitment, have progrcRHcd satieifactorily and as rapidly as 'lic. méans proVidhd wölüd admiK ïlib trial! o? torpedöes have contiüued, and have proved thé impoitunee of this auxiliary in the defeuse of our harbors. Hecretary Robeson Rtates that under tho act of Cougri'ss for the relief of poraons from the ravages of grasHhoppors, 1,957,108 rationa were isaued to 63,593 adulta, and 43,942 children under 12yenrsof age, retidtog ia Minnesota, Kansas, Ncbraska, Iowa, Colorado and Dakota. Of tbe snm of 150,000 appropriiited by Cougïes $132,88?.6S)waadisburBed foï the püïpose i'ohteniplated by the act, and $5,12.31 was re turhed to the Treamiryi '1 he Kecretary calis "atténtion to the fact that the animal apprópruttion fot arming and oqnipping the militia (200;000) is now no largef Ihan ia 1808. when the populatiou wiia abont 8,000,000, and says that with such a meager appi opriation it is hnpossible for him to meet all tho demanda made upon his department by the States and Temtories. Sccretai-y Eelknap henrtily approvcs of the plan proposed yy the Board on Arseuala in 1874, for the conceutration of ordnance manufactories, bv the establishment in ihe vicinity of New York city of a grand arsenal of construction, The entire arm haa been Bupptied durmg the year wilh hew rifles and carbihés, caliber 45. The Hccretary calla atténtion to the Rio Grande tronbles, and says measiires have been instituted to preaen'e the integrity of, and enforce a proper regard for, the territory of the United Staten. The Indiana in the Department of the Missouri are represented to be in a peaceful mooi at present, and all ou their reeervatious except the irtpii, It ia siiggested that Alaska bo attached to j Washington Territory as a couuty. The report show that the actual expenditures of tho War Department for the year ending June 30, 1874, iucluding river and harbor impi ovements, weis f42, 32(1,314.71; tlie same i for tbfe last ÜBcal year, t-Uding JuiiO 30. 1875, ! were $41,277,375.28- ehowing a reduction of 4l,048,93'J.43. The estimates for the rouVary establiahment for the ensuing fiscal year ending June 30, 1877, are $33. 452, 396. 50; those tor iiio üurroit flEBaj yfear, ending June 30, 1B7G, were ii32, 488, 969.50- being nu increase of 427. The appropriations for that purpoee j ior the cui rent. titieal year were 28, 727, 407. 99. Pecretary Belknap states that the curioaitiea i of the great ïellowfetone National Taik are i rapidly being dtstroyed. and urges that troopa be stationed in or near the park to prevent ! spoliation. He rightly saya that evcrything ; shonld be done that can be to protect all that la giund and bcautiful in that remarkable región. The Postofflce Department. The Poetmaster-General's annual report j ahowa the receipts of the Department to be 27,441,360, and expenditurea 833,611,309. The receipts excecd thofe of 1874 1 13-100 per cent., and the expenditures 4 C2-100. The actual amount drawn from the Treasury was 4, 716,329, or $543,006 less than the previoua .year. The recorded complaints of missing lettets nnmber 5,645, of which 2.C77 were registered letters containing bonda, drafts, etc, amounting to $76,216, whilo tho uuregistered lettere contained valuables amountmg to 475,9S7. Of the fermer, 1,083 were satisfaotorily accounted for, Sfcl actually lost, and f83 remaiii uuder lnveBtigation. AlTests for violation of tho postal laws nnmbered 307, the greater portiou not beiug counected with the pqatal service. One hundred and aeven convictions were had, and 157 await trial. The fact that but one American steama'úp j line carries mails aeross the AtlaLtic, and none to South America, is regarded as humüiating to American pride. Mr. Jewell thinks as a matter of national jiride, as an aid to the revival of American comtnerce, and as a meane of ! plnng ah eincioiit stenm marine service fo j mimediate ute by the Ciüvefnment in caso of I war, provisión ubould be made for the tianaportation of .our maila on important ocean j routes in ateaniBhips ofticered and manned by : our own citizens and eailing uuder onr om flag. i Mr. Jewell thinks the straw-bidding evil can j be effectually removed by such a change in the , law as will authonze the Postmaatcr-General, on the failure of any accepted bidder, to offer a contract tu at pretent to the next lowcet bidder in tlie list, if. in his judgment, the bid bo not too high, and if thia nextloweat bidder declines ] to enter into a contract, to bo authorized to i i enter into a contract with any person not a bidder at any price not execoding said next lowest bid. Mr. Jewell praisea the fast mail service, and ! thinkti it will be Btill further iucreaaed. He recomtneuda that any person be permitted, without additional charge, to write a form of preeentation in any book, pamphlet. magai zint', periodical, or any other matter of the third olatis, aud ao tliat the eender of any package be permitted witliout additional charge to write his or her name aud addresa on the outside thereof wit! i the word "from" above or preceding the aame, so as to inform the person addresaed of the name of tho eender, and to write briéfly on any package the nuuiber and name of articles inclosed. As to the tranaiont printed matter, the Pontrnaater-General ea a : "I recommeud that tho iioetage on transient newapapera and periodicala, booka, printed matter of all aorta, lithcgraplis and ma-pa, sheet muaic, pliotographa, and manueciipts deaigned for publication, ahall be reduced to one cent for each two ouncea or f raction thereof, Whloh waa the rate bof ore tho enactinent of the law advancing it duiing the closing honra of the last Cougresa." The Postmaster-General anya the newsystem of prepavnieiit of postugc on newHpapers haa I eaved the department abont $1,000,000 duliug the ürst year of its trial, aud ia of the opuaiou tuut the law ought to etand. It is recommeuded that the pay of Postinaaters of the fourth claas be based upon the busineta of their respective offices, as determmcd by the cancellation of atamps. Mr. Jewell reoonuneuds the passage of a law compelliug Poatmasters whose net income is $1, 000 or more t o givo entire atténtion to the duties of their offices. Ïn4i;m Airan;. Commissioner of Indian Affaire Smith, in hia anmml report, savs tbatthe reporta of the Indian Superintendente and Agenta oonvey uuI miatakable evidence of a year of ad vanee in the I civilization of the Indiana. Tbcir testimony is i almoet uniform to the fact that the civiliz.ition of Indiana ia not only entirely practicable, but iairly nuder way. The Commisaioner expresaea the opinión that a gen-.Tal Indian war will aever agaiu occur in the United States. In refereuce to the Black Hills country the Commiasioner recommenda that legialati-n be now sought from Cougreaa offering a fair aud full equivalent for the counLry lying between tho north and nouth forka of Choyeuno Ktver in Dakota, the tnio equivalent to be offered the Hioiix aa helplese wafd-i of the Govcrnmeilt for the Black Hilla. The CommiBaiouer anys tho need of the Inditn Torritory is government of tlie mplest form poeible aud auggeats that a govemment ëimilar to that provided for the territory of the United States northwest of tho River Ohio prcHniinary to the orgamzation of a General Ansembly, wonld bo best adapted for the Territory at present. He recomiiieiidu Sist tho. matter be agaiu brongbt before Congicsa. Tno Comoiissioner oppotsea I the trauBtoi of tho Indian Bureau to the War Kepartiiient. He hep that Cougreas will reuiove the difticulties uhici) have heret'ifore been eKperieuced in procuriup; tho enactmeut of laws and necessary appropriations for thfe .niig und cdiieation ot Iudiane. Nouo but the veiy beat men, he aa.,.4. Bhould be apI ointed "au agenta, und he ex))rc3fioa tho hopo that the Governmeut will stili be inolined to cu:l op m the relïiotw bodies of t!.ie oonntry to name the men. The N;ivy. BecretaiyïtöbBBon'sreb'ort of thtenéval aeii vioeior the sbovra that the numher ol lfB sela of every class and deacriptto now borneen tlio navy régiater ia 147, cnrying 1,195 Klms : and 152,189 tona meaiairement. Of ïlm-o. roany are aailinf! veeeela ot' little er no valué aa parL"of the efficiënt forcé for eitheï Urn emis aa or tigbtiug purpoaes of the proeênt day. Tne rteam Tes-aelu ia djatintiiiBbf d from runflada ;ind torpedibipB, nnmber 95, of whioh 25 are 1 ti!g. Of the rf-mainiier 38 are lèadyfor uso 1 wfien reijuired. Our irou-clad fleet oonaista of ', a' veBBüK 21 of tae monitor type, % tcrpe.'o, hliw, and S WW lauuohed. AU the vossel liSo'u'.rf iaiiai" W ironolwta wn 2 torpedo-boatn. Detalla are given of the Dperations of the Heet on each of the six staLionH. The Secretary is gratiiiod to state tbat the navy is atronger and in a moro ellinient eondition than at auy timo wit'jin tho last Beven reare. He aak Congress for an appropriation to finish at once all tho repairs of tho five lonlile-turvctO'l monitor. WitU these adder! to it, oür lronclacl pprvice wonid for pui poses af defeuse, present a very substantial barrkrto ihything which eotild cross tho seas and attempt to enter otir porto. TÍie Public Doiuutn. Cotmniseioner Burdett, of the General Land Oftice, states that Üio disposal of public lancta for the lant flscul year amount to 7,071,271.2:) iicreè, as folio ws : Acres. Dispoeal of public landfi by ordinary cash Bales 45,061 Military bounty laud warrant locations undcr act of J ÉTÜ, 1852, and 1H55 1 87,000 HouiG6tcafl cutrieR 2f35ñ,r7 Timber culture entrica 464,870 Agricultural Gallege sorlp localions ,4:)2 Certiflod to rallroada 8,107,618 LaDd approved to States as Bwauip 47,71 Ccrtiüed for Agricultura] Oollegea 2'2,021 -I fui' cómmnn pcIiooIb 142,388 (' tii'cd fnr universitie-s . 10,454 Internal iiuprovcraent Eclections af próvcd to States 8,fil4 Hioux hali-brced .scrip locations 1,526 Chippcwa half-breed Bcrip loeationa 11,181 ■Iti'ül .7,070,271 Dipposalp cf previous yeai1. 9,530,872 Thia is a decreaae of 2,áGO,C01, 54 acres, as eompared with the area disposed of in 1874. Tuis result is attributel by tbe Goramieaioner largely to tho devastation by grasshoppers, tho f.ilJin off of emigratiou, and the general business depresnion.