Rensselaer Standard, Volume 1, Number 25, Rensselaer, Jasper County, 6 December 1879 — SECRETARY SHERMAN’S REPORT. [ARTICLE]

SECRETARY SHERMAN’S REPORT.

TREASURY Dr.PARTMF.VT, ) Washiwtow, D. C.. December 1, 1879. $ Sir—l have the honor of submitting the following annual report: RECWITS AKD EXPKXDITIHEB. The ordinary revenue*, from all sources, for the fiscal year ending June 80,1879, were: From customs $137,250,042.70 From internal revenue. 113,561.610.58 From sale* of public lands 924.781 06 From tax on eirculatiou and deposit* of National banks...... 6,747.500 32 From repayment of interest by _ Pacific railroad companies.... 2,707,2014)8 From custom fee*, fine*, penaltt***- 1,100,871.66 From fee*, consular, letters pat_entand lands. 2,1364)51.79 From proceed* of sale of government property... ... 181.128.81 From premium on sales of coin.. 8.104.38 From premium on loans 1.496,943 25 From profits on coinage, etc.... 2,914,938.67 From revenues of tlieD [strict of Columbia 1,741.461-16 From miscellaneous sources ... 3,016,5444)5 ordinary receipts 8273.827,184.46 The ordinary expenditures for • * 16.439.997.17 For foreign intercourse 1,333.836.13 For 1ndiana......... 54206,109.08 For pensious, including *5,373.of f >el ißious 35,121,462.39 For the military establishment, including river and harbor Improvements and arsenals 40,423,600.73 For the naval establishment, including vessels, machinery 7 and improvement* at navy- ...... „t... 15.126.126.84 including public boildinga, llgbt-houaeaand collecting the rßTeone 88,870,205.78

; FerroradiUuvtM account of l the DtotrtritofC»'unibla " 3.597,516.41 I For tautest on the mtMir debt.. ttfibSS7.9*9.oo | For payment of Halifax award 5,900.000-0© - Total ordinary exp. inlrtnrp,»t6t,»47 > B63.M Lasriag a surplus revenue of *U,s77*.BM>W3. which was ap- . piled as foltnwa: To the redemption of United States notes, etc ’•1413.1« Tethe redemption of fractional currency .- ... 706,162.99 To the redemption of t» per c ent bonds tor the oinking fund... 18.300.00 To increase of cash balanc e in the Treasury........ <M24.Q-J4.7T Total. «j. _ *0,879,900.93 The amount due the sinking fund for the rear was *3C,955,5<Vi.63 Leaving a deficiency en this account of ... 30.076,803.70 Compared with the previous fiscal year the receipts for 1879 have increased *16.711.159.70 tn the following Items: In customs revenue 7,079,867.90 la internal revenue 2,979,985.34 In premium on loons 1,496,943.29 In payment of interest by Pacific railroad companies 1,840,246.67 In profits on coinage. 1,234.176.34 And in miscellaneous Items 2UV80.440.10 There was a decrease of *647,803.94, as follows: *• In sales of pabtle lands, *194,962.31. In premiums oa sales of eoin, *308.997.92. In semi-annual tax on banks, *119,992.64. In proceeds of sales of government property, *08.341.07, making the net Increase in tae receipt* from all source* for the year of *16.063,305.76. The expenditures show an increase over the previous yean of *32,222,731.26, as follows: In the War Department. *8,271,912.88; tn the Interior Department, *8,561,292.11 (Indians, *570328.80. and pensions, *7,964,463.31). In the interest on the public debt. *2,827,074.39, and in the civil and miscellaneous. *12,503.851.92. There was a decrease of *2,240.174.53 in the Navy Department, making an increase in the expenditures of *29,983,956.73. FISCAL TEAR 1880. For the present fiscal year the revenue, actual and estimated, will be as follows: For quarter For remaining ending Sen- throe-nuar-teinber 30, tars of the RECEIPTS. 1879. year. ■ ' * ACTUAL. ESTIMATED. From customs *44,083.497.93 *107916,502X)7 From internal revenue 29,409,691.81 86,590,308.10 From sales o f public lands... 117,383.61 882,616.39 From tax on circulation and deposits of national banks.. 3,360,560.60 3,389,430.40 From repaym’nt of Interest by Pacific r a 11road cos 292,427.46 1,247,572.54 From customs f fees, fines, penalties, etc,.... 239,579.26 860,420.74 From fees, consular, letters patent and -. lands v 506,864.29 1,693,135.71 From proceeds of sales of government property 55,881.18 144,118.82 From profits on coinage, etc... 469,486.09 2,030,513.91 From revenues of the District of Columbia... 238,864.06 1,481,135.94 From miscellaneous sources . .1,109,334.17 1,940,665.83 Total receipts *70.843,579.46 *208156,420.54 The expenditures for the same period, actual and estimated, will be: For quarter For remaining EXPENDITURE* ending Bept tbreeqnarters EXPENDITURES. pfo. es tbeyaar, actual. estimated. For civil and miscellaneous expenses, including public buildi'gK, lighthouses. oud collecting the *• ' revenue $12,165,764.34* 39.256.269.66 For Indians 2,046,748.02 3,451,251.98 For pensions. regular .*.. 10.892,742.06 20,480,257.94 For arrears of penskius 16.374,240.60 3,252,750.40 For military establishment, inclndingfortifleations, river » . and bartMir improve in ente, and arsenals . 12,104,897.38 31,017,692.62 For naval establishment. Including vessels and machinery and improvements at navy- * yards 4,196.569.59 11,303.430.41 For expendi-i turee on ac- - count of the IMatriri erf Col- , urnbia 1,163,728.65 2,414,237.35 For interest on public debt... 32.736.685.46 61,140.724.54 Total ordinary expenditures . *91,683,385.i0'*172316.614.90 Total receipts, Actual and estimated *288,000,000.00 Total expenditures, actual and estimated 264.000.000.00 Leaving a balance of f 24.000.000.00 After applying the balance of the special deI>osU of United States notes held in the treasury for the redemption of fractional currency, amounting to *8,375,934, to the payment of arrears of pensions, as directed In section 3of the act approved June 21, 1879, the Increased revenue derived during the months of July. August and September of the present fiscal year, was fully absorbed by current expenses ana the payment of *16,374.249.60 arrears of pensions accruing under the act approved January 26, 1879. Notwithstanding these unusual demands, the department has been able to purchase and apply to the sinking fund, out of the surplus revenues for the month or October, $1,050,000 six per oentmn bonds es 1881, and *676,050 five per centum bonds, act of March 3, 1864, the latter of which is the excess es redemption of those bonds pver the isSuee of four per oents under the refunding act*; and unless unexpected appropriations available for expenditure within this year be. made by Congress, the surplus revenues, in addition to paying off the balance of arrears of pensions, will probably enable the department to apply to the sinking fund aooount during the year the sum of *24,000.000.

FISCAL TEAR 1881. Tbe revenues for the fiscal year ending June 30.1881. estimated upon existing law*, will be: From customs.... *152,000,000 From internal revenue 116,000.000 From sale* or public lands. 1,000.000 From tax on circulation and deposit* of national banks . 6,750.000 From repayment of interest by Pacific railroad companies 1,500,000 From customs fees, penalties, stc... i inn non From fees, consular, letters patent aad lauds. .. 2,200,000 From proceed* of sales of government property • 200.000 From profits on coinage, etc 2.500.000 From miscellaneous sources 4,750.000 Total ordinary reoeipte. *288,000.000 The estimates of expenditures tor the same period, received from the several executive departments. are as follows: Judicial .... 399,300.00 Foreign intercourse 1,185.135.00 Military establishment 29,319,794 78 Naval establishment 14,509,147.95 Indian affairs 4,992.845.86 ft^ 0 1S- 32.404.000.00 Public WorksTreasury Department 3.121,150.00 War Department 7,557,034 4“» Navy Department 375,0004X> Interior Department. 508,633 32 Department of Agriculture... 6.650 00 Postal service. 7,711.900.00 Miscellaneous 17,801,520.75 Permanent annual appropriations— Interest on tbe public debt.... 88,877,410 00 Sinking fund 39.8V8.225.’72 Refunding customs, internal revenue, lands, etc 5,778,600.00 Collecting revenue from cuttom*... 5.500.000.00 MisceUaneou* .. 1,766,000.00 Total estimated expenditures, Or an estimated surplus 0f........ 9,902,635.61 Excluding the sinkiug fund, ths estimated expenditure* will be. 238,269.138.87 Showing a surplus of 49,7304961.33 The estimates for the revenue for the next fiscal year are based upon the assumption that

the Jmmmmmi maetpte .daring the am* lew w*kunilMHH,SM Mififlwislht on. tagsp sf wonts arm ted hjr repeat dapse set on rather to by the -q-d trade. Them waste kau snmUlcd, Ike seresmss tot next year probably will not be increased beyond thramvuat estimated. The estimated ex peadituras for the same period are based upoa the requirements of existing law and the necessary appropriation* far public works tat earns of const rueUuii. The osttfnated surplus of *61992,-6-15.61 will probably he exhausted by additional appropriations. Should Congress increase the appropriations beyond this limit. Or repeal or reduce existing taxea, other; sourem of revenue most be provided. Should this course be determined upon—which, however, the Secretary doe* not recommend—he wouhl suggest, as a means of nice Dug the deficiency, the restoration otf a moderate duty on tea ana coffee and the levying or an internal tax on manufiu t urora of opium, as hereinafter more tolly stated.« nnrtwiMKe. The following table shows the transactions in refunding since March 1,1877, aud the annual saving of Interest therefrom; Title of loan. 3S' |1 ?|'b ft Hi l*4*toof *1864 5 %aJ»90!250 * 9,707 ’ 512 ®° 5-20's of 1865.. 6 100.436.050 Consols of 1865 6 2011063,100 T ,., on Consols of .1.867 6 310,622,750 JW.071.74-.00 Consols of 1868 6 37,473.800 Total 845,345.950 48,779,254.50 In place of the above bonds there have been issued bonds bearing interest as follows: A It Sit Title of loan. 1 tS jl~ Funded loan of 1891 4*81*185,000,000 $ 6,075,000 Funded loan of 1907, including refunding oertifloatea 4 710,345,950 38,413,838 Total.. |~1*845,345,9501 $34,488338 —Making a saving In the annual interest since March 1, 1877, of *14,240,416.50. These transactions have been accomplished without the loos of a dollar, and without appreciably disturbing the current business of the country. In a few days copies of the contracts, circulars, tanSirtaat correspondence, and accounts pertaining ereto, and also to resumption, will be laid before Congress. The entire transactions in refunding since 1870 have been us follows: | o i* I Title of loan. « t Amo'nt refund- Anuual intor’st !«a, ed. charge. Loan of 1858 5 * 14,217,000 10-40’s, 1864 5 193,890,250 $10,405,362.50 5-20’s, 1862. 6 401,143,780' 5-20's March 1864 6 1,827,100 5-20’s of J*ne 1864 6 59,185,400 5-20’s, 1865 . 0 . 160.144,500 Con’ls, 1865. 6 211.577.05 Di 71,234,322.00 Con’ls, 1867. 6 316,423.800, Con’ls, 1868. 6 57,677,050| Total j.... $1.395,345350:*81,639,6.84.50

In place of the above bonds there have been issued uonds bearing interest as follows: X o Annual inTiUe of loan, atf £» Total value, terost ch’g’d a , Funded lean of 1881 5 * 500,000,000 $25,000,000 Funded loan of 1891 4*« 185,000,000 8,325,000 Funded loan of 1901, Including refunding certificates ... 4 710,345,950 28,413,838 T0ta151,395,345,950 *61,738,838 —making an annual saving hereafter in the interest charge on account or refunding operations of $19.900!846.50. The following described bonds will mature in 1880 and 1881: | Rate Date of Account. ofin- maturity. Amonnt. fret. Feb. 8. 1861 6 Dec. 31,’80 * 18,415,000 July 17, and Aug. 5,1861 6 Juno3o,’Bl 182,605,550 March 3. 1863.... 6June3o.’Bl 71,787,000 March 2. 1861.... 6 July 11,’81 823,800 July 1, 1870, and Jan. 20,1871... s|May I,’Bl 506,440,350 Total J *788,071,700

Of these bonds, the loan of February 8, 1861, maturing December 31, 1880, Is payable upon the demand of the holders, and can probably be provided for from the surplus revenues. Under the refunding acts of July 14, 1870, and January 20, 1871. bonds for refunding purposes were authorized hi the amount of $1,500,000.000. Of this amount there have been Issued, as above stated, $1,395,345,950, leaving available for future refunding operations $104,654,050. PUBLIC MONKYB. Tne monetary transactions of the government have been conducted through the offices of the United Btates treasurer, nine assistant treasurers, live hundred and ten depositories, and two hundred and twenty-two national bank depositories. The receipts of the government from all sources have amounted, during the last year, as shown bv warrants, to $1,066,634,827.46, of which $792,807,643 have been received from loans, $137,250,047.70 from customs, $113,561,610.58 from internal revenue,'and $23,015,523.18 from sales of land and from miscellaneous sources. The receipts were deposited as follows: In independent treasury 0ff10e5..5413,353,508.43 In national bank depositories,.. 653,571,319.03 These transactions have been conducted without loss, and It may be stated that all officers engaged la the collection aad Rafe-keeping of the revenues of the government have collected and held the moneys without lose until properly transferred or paid out, and that, as fur as accounts have been adjusted, there appears to be no loss by defaults in disbursements, the trifling balances not adjusted being suspended mainly for information or investigation. In this connection attention is invited to the suggestions of the First Comptroller of the Treasury, as sot forth in bis report, in regard to the importance of prescribing by law tne frequency and manner In which the current accounts of the disbursing officers of the departments should be subjected to investigation; the danger to the treasury of Issuing duplicate bonds in lieu of coupon bonds alleged to have been destroyed; and fbe importance of defining the word “claim" as used In section 3,477 revised statutes of (lie United States, and to other suggestions of that officer. RRVBNTTE FROM CUSTOMS. The disburse meats for collecting the revenue from customs, for expenses incurred within the following decal years, have been as follows: Jo 1877 $6,304,279.57 In 1878 5,525,787.32 In 1879 5,485,779.03 This shows a redaction for 1878 oyer 1877 of $778,492.25, and a redaction Tor 1879 over 1878 of $40,008.29. making a total saving Tor the two years of $818,500.54. A marked Improvement has also occurred during the past year to the coUeotton of the revenue from customs. The revenue under the ad valorem system has fallen short of the amount which should have been collected upon a proper assessment of the real foreign market value. This was due to a system of undervaluations la the entries at the custom houses, especially upon goods consigned by foreign manufacturers to agmita in the United States. Evidence of such undervaluations has been obtained in many cases, and upon this evidence the Invoice prices have been advanced by the local appraisers, and from these advance# appeals for reappralsement nave been taken in a large number of omcs. The number of such reappraise ments had at the P® rt ®IJ th ® years ending June 30, from 1875 to 1878, is as follows: 1875 167 | 1«78 278 1876 262 1879 . 556 The duties collected on passengers’ baggage at the port of New York during the three years ending the 30Ui of June last were as follow*: 1877 j$ 6.303.511 1878 8,676,064 1879 . 17.185,791 The taw does net define any limit or quality or value hi regard to either household or personal* effects of persons arriving in the United States which may be admitted free of duty, and it la recommended that a limitation governing tits * t Uahod-by Congress. INTKKMAL REVENUE. The receipts from the several sources of taxation ander the Internal revenue laws for the fisosJ year ending June 30,18T9i were as follow* From spirits. .*.......7$ 52,570,284.69 From tobacco 40,135,002 65 From fermented liquors rr. 10,129.320.0* Pram banks and bankers 3,1Ph,c88.0» Pram penalties, etc. 279,697.80

peak* laws Total. .sll3 J»18,466.87 The tessM at rotleethms shown by the tareftang table includes commissions Mi sates of ■tamps paid tn kind, ns weU ns the amount wdtectedln 1878. bat not depmited fill thetas* fiscal year. There thus arises aa apparent variation between the amounts of teHeetkms given in the table and tbme shown by the covering wmtssMs at the treasury. The Increase of tae revenue far spirits daring 18T9 was *2.149.40890. The increase from tobacco tor tae same year was but *62,247.98. The chief soarece of internal revenue an spirits, tobacco and fermented ttqoora, which yield this year an income of *103.434,007.42, oat at a total internal revenue at *113.919,406 87. The very large proportion of the revenue derived from these sources is of itself an argument for the stability of the rates of taxation upon them. If the proportion were small, fiuetuat ions in the rates of taxation would be of less roaeeaoenee. The simple agitation of the question of the redaction or tlie tobacco tax caused a temporary suspension of operations in the various manufactories of tobaooo, and is estimated by tae Commissioner of Intern si Revenue te have caused a diminution in tbs receipts from tax on that article during the first half-year of 1878 of nearly *2,000.000. OOMMKRCB AND NAVIGATION. The total ton tinge of vessels of the United States as shown by the records of the register’s bureau at the clone es the fiscal year ending June 30, 1879, was 4,169,600 tens. Of this tonnage 1,491,533 tons represented 2,717 vessels registered for the foreign trade, and 2.678,067 tons represented 22,494 vessetoenroUed and licensed and engaged In the coasting and domestic trade. There has been an Increase of tone employed in domestic trade and a decrease of 137,514 tons employed In the foreign trade by sea. as compared with the tonnage of last year. The Teasels built daring the year are classed as foliO*K No. TonnageSail vessels 468 66.867 Steam vessels 335 80.381 Canal-boats enrolled 36 4,069 Barges 293 35,733 Total 1,133 193,030 The vessels built in 1878 comprised 235,504 tons, tfeing slightly in excess of the number built during the past year. The total tonnage of vessels entered at the seaboard ports from foreign countries was 11,530,527 tons during the year ending June 30,1878, and 13.768,137 tons during the last fiscal year, showing an increase of 2.237,610 tons, or about 19 per cent. The American tonnage entered exhibited an Increase of only 40,306 tons, or 1 per cent., while the foreign showed an increase of 2,197,304 tons, or nearly 26 per cent The tonnage In these cases is computed on the basis of the number of entries of vessels, and on the number of vessels, and is restricted to seaboard ports. Of the total amount of merchandise brought in at seaboard, lake, and river ports during the last flcsal year, an amount of the value of *143,590.353 was imported in American vessels and $310,499,599 in foreign. Of the exports a valne of $128,425, 389 was shipped in American and $600,769,633in foreign vessels. Of the combined imports and exports 23 per eont. only of the total value was conveyed in American vessels. In 1857 over 75 per cent, of the merchandise imported and exportrd was carried in vessels of the United States. At present but 23 per cent, as stated, Is carried in such vessels, though the total volume of the trade has risen from a valne of nearly seven hundred to nearly twelve hundred millions of dollars. It is neither to the advantage nor to the honor of the country that so immense a proportion of its foreign carrying trade lias passed to other nations. The great decline in our tonnage, as is well known, was dne to the war, and, soon after its close, it was proposed to facilitate the restoration to ctur merchant marine of vessels that had been transferred to foreign flags. But the effort at restoration failed, and a special prohibition against the return of suoh vessels was embodied In the statutes. It may be jrell questioned whether the severity of the existing statute might not properly be relaxed, after the lapse or so long a time, during which the privilege of registry has been dented to this class of Vessels, and since the grounds for denial have in a measure lost their original toroe. It has always been the policy of the law to restrict the privileges of American registry to vessels built in this ooiintry. The object was to further the shipbuilding and naval interests of the country, and this policy was so successful as to advance the •United States to the second rank among nations as respects tonnage and the number of its ships. While wood was the article mainly used in the construction of ships, we had the advantage over foreign nations in the cost of material. Our ship-builders could not only supply vessels for domestic ooremerce, but could successfully compete In the carrying trade of the world. The use of iron in ship btillding in place of wood Is, however, steadily increasing, and in the oust of iron ana in the price of labor other commercial nations have tne advantage.. It is a grave question of public policy whether the period has not arrived when the unlimited right or purchase under the English statutes should be extended to vessels as well as to other commodities, and when admission to American registry upon the payment of duties should be allowed them upon importation. The recovery of our old position hi the carrying trade will more than counterbalance any disadvantage likely to ensue from a modification, of restriction upon the right to purchase, while a moderate duty on ships imported will enable onr ship builders to compete successfully in the construction of iron vessels of the largest class. The proper policy to be pursued is difficult to determine, but the great Importance of considering the subject is respectfully submitted to the attention of Congress.

EXPORTS AND IMPORTS. The exports and Imports of the United States during the last fiscal year are as follows: Exports of domestic merchandise.7s69B,34o,7oo Experts of foreign merchandise.... 12,098,651 Total .$710,439,441 Imports of merchandise 445,777,775 Excess of exports over Imports. .$264,661,666 Compared with the previous year, the lmSorts are greater by $8,726,243, and the exports y $15,573,675. The annual average or the excess of such imports over exports for the ten years ending June 30, 1873, is $104,706,922, but during the last four years there has been an excess of exports over Imports, as follows: In 1876 $ 79,643,481 In 1877... 151,152.094 In 1878 257,814,234 In 1879 . 264,661,666 The total gold value of exports of domestic merchandise from tbe United States has increased from $275,166,567 in 1H69 to $698,340,790Tn 1879, an increase of 154 per cent. With one or two unimportant exceptions, the United States stands alone among the commercial nations tn having an excess of exports over imports of merchandise. _ The increase In the values of our exports is derived mainly from breadstuff*, preserved meats, copper, live animals, agricultural implements, furs and for skins, distilled spirits and refined sugar. Many other articles exhibit a large increase in the quantity exported, but a decrease in value, owingto their low prices. The articles which show the greatest increase In the quantities exported are wheat, flour, oats, corn, rye, copper, ootton, petroleum and other oils, provisions (excepting beef and lardi, quicksilver, distilled spirits, starch, sugar, molasses, tallow, find leaf tobacco. Tbe value of the exports of breadstuff* from the United States during the fiscal year amounted to $210,355,628. and constituted 30 per cent, of tbe total value of our exports of domestic merchandise. The value qf breadstuffs exported daring the year 1873 amounted to only $96,743,151. The almost unlimited capacity of the Western and Northwestern States for the production of oereels, tn connection with the faculties for cheap transportation, has brought them Into sharp competition with the older States and with foreign countries. Many products of American manufacture, previously exported in small guantlties or not at all, now find profitable mareta in foreign oountries; and some of these products are now exported to countries front which a few years ago they werelargely imported into the United States. The Importation of merchandise Into the United States amounted to $642;i32,210 during tbe flseal year ending June 30,1873. ft foil to $437,051.023 In 1878, aad increased to •145,777,775 in 1879—an increase of $8,726,952, or of two per cent, as oompared with the preceding year. The importation of railroad ban declined from 531,537 in 1872, to 2,611 tons in 1879. The production of railroad bars in the United States during the year 1878 amounted to 788,112 tons. , PUBLIC SERVICE. The Secretary acknowledges his obligations to the several officers of bureaus and divisions of the department for tbe ability, skill and industry manifested by them in tbe discharge of their imrtant and complicated duties. In this report refers only to the leading operations of tbe department, and those only in general terms, bnt refers for details to the statements and reports herewith transmitted. The organisation of the several bureaus is such, and the system of accounting so perfect, that the financial transactions of the government during the past two years, aggregating $3,354,345,049.53, have been adjusted without question, with the exception of a Tew small balances now in the process of collection, of which the government will eventually lose less than $13,000, or less than four mills oa each SI,OOO of the amount involved. JOHN Sherman, Secretary. ToJjjMMHonorable, the Speaker of the Hones of