BY DUFF OREEI.

PILOT AND TRANSCRIPT.Published evwry morning, (Sundays excepted.,) at No.

11, Water street, opposite CUeapside?

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Where five subscribers at one post office unite,and remit free of postage, they wIH receivefive copies of the Weekly Pilot for $lO 00

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The payment inall cases to be in advance. The Ed-itor reserves the right to continue the paper, unless allarrearages are paiu; and in that case the price of theweekly willbe THREE DOLBARS per annum, and of Ihe

\u2666wintry five dollars per annum.Qp-The "PILOT FOR THE COUNTRY," tea large,

handsome sheet, and contains all the interesting po-litical, and other news, from the DAILY PILOT. It Ispublished on MONDAY and THURSDAY EVENINGS.

The "WEEKLY PILOT" also contains all the in

tareoting matter from the Daily, carefully arranged. Itforms a valuable sheet for Winding, for future reference,a* itis the intention f the publisher to make it a corn- ipletc Political Register. ]

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Curds f two lines only, $8 per annum, in advance. 1{fg-Sextecn lines , or less, make a square. If an adver-

tisement exceeds sixteen lines,the price willbe in propor-tion. All advertisements are payable at the time oftheir insertion, except yearlies, which are payable quar-terly in advance. All advertisements ordered in tillforbid, wiH be charged twenty fivs cents for each subsequunt insertion.

"BUSINESS CARD/3."

MAM M. MAKT,ENGRAVER ON WOOD,

ni K llnlliday 61. lm

.IOIIN CI.A Hit.LOTTERY AND EXCHANGE OFFICE,

Museum Building*, Cnlverl st.

.JOHN 1.. STONKK,LOTTERY AND EXCHANGE OFFICE,

No. 3, next to Baltimore st. Bridge.SbTT.LMAN ,T t ltook,

COMMISSION MERCHANTS,Corner ot I'ralt mid South at*.

~

WILLIAMN. HAIUUSONIROOK STORE,

North Guy, near Fuyette street.

JOSEPH DL'KEHAKTIT CO.VARIETYSTORE,

No. lOlj Bultimore^street.CANFIBLD Ai DItOTHKIh

IMPORTERS AND DEALERS IN WATCHES,SLOCKS, JEWELRY, MILITARY GOODS, tjc.

8. E. corner of Market and Charles street*.

TERNEH. "WHEKLRIGHT Ai JIUDBE,COMMISSION MERCHANTS,

Na. 2 Soutli Charles street, (up stairs.)"

OLIVER PARKER,STOVE MANUFACTORY 6i IRON STORE,

Horner of Calvert and Lombard streets.

LEWIS F. SCOTTI,GENERAL INTELLIGENCE OFFICE,

No. S West Fayette street, near Barnum's Hotel."

U. L. UT/IIUKST,DEALER IN DR UGS AND MEDICINES,

Corner of Pratt st. ami Dugan's wharf-ROBERTS die ATKINSON,

DEALERS IN DRUGS AND MEDICINES,Corner of Baltimore Ik Hanover Bts.

"

JACOB HODCK,"

LABORATORY, 10 SOUTH CIIARI.ES ST.JAMES GRAY, #

DEALER IN DRUGS AND MEDICINES,No. 23 Water street.

MRTS MRS. OAVIHUES'ABADEMY FOR YOUNG LADIES,

No. 11 St. Pant Street. Baltimore.

AShas been already announced, this Institution willlie re opened on the first Monday, in September

next, when the duties of the several departmeuis willbe conducted by the persons, whose name, are afiixedto their, reepectively, as follows:

ENGLISH and CLASSICAL DEPARTMENT, in-eluding the Latin and Greek Languages, by Mr. Davidge,aided by Mr. N. Morison, a distinguished gradu" eofHarvard University, and Miss M. B. Allison, late ol theeelebiated Charlestown Academy, near Boston, bothexperienced teachers. In addition to the regularrucitalions, courses of Lectures on Astronomy, NaturalPhilosophy, Chemistry, and Botany, will be deliveredin their appropriate order.

DEPARTMENT OF MODERN LANGUAGES.?FRENCH, by M. I.arcintric aided hy\Mad. Arcamhai

t whom, as French Ooverness, the conversauonal de-partment is particularly assigned.SPANISH by Sr. Pixarro.GERMAN by Dr. Freitag.ITALIANby Signor B. Custelfi.

DEPARTMENT OF MUSIC.?VocaI Music, by Mrs.H. Wallack, (late Miss Turpiu,) Instrumental Music

including Harp, Piano, Guitar, ike., by Messrs Nennin-ger, Dielman, Mrs. Wallack, Re.

DRAWING. Mr. Hoists.DANCING Mr. Durocher.In the Modcren languages, the lessons are given daily,

instead of three times a week us usual, a course indispensable, in the epinion ofthe principals, to the properadvancement of the pupils. In French llie recitationsoccupy from ari hour and twenty, to an hour und fortyminutes, daily, independently of the conversational exercises, incidental to social intercourse, and, to add to

Ihe facilities, there will he at regular intervals, Frenchand Musicu Soirees, for the benufit of Hie pupils in thosedepartments resoeetively.

In addition to instructing his own classes. Air. D.wiH continue to exercise a supervising care over all the(tranches of study, examining the scholars, and seeingthat justice is done to them.

Pupils are charged from the time of entrance, and nodeduction will be made for absence, except incases of longprotracted severe indisposition.

'l"he academical year commences on the first Mondayn September, embraces forty-six weeks, und is divided

' inlofour equal terms. Pupils are not received fora period less than a tore and Pupils chnnot be withdrawnexcept at lintend of a current full term.

THE '"-ans tint AS FOLLOWS:

Board, per academic year, s'£oo 00D iv boarding, or Dining and thus enjoy-

ing the benefit of French conversationat table, per academic year, CO 00

English instruction, In all ILS branches<jl7 50 per single term, or ifcontinuedup to die time of die summer recess,sls 00 per term, say, per year, 0000 |

French, lulim, Spanish, Gentian, Latin,Re., each per term,.sß 00, or per year, 32 00

Stationery, per term 100Music, including llarp and Guitar, at in-

structer's prices,Use ofinstrument, per term, 3 00Drawing and Painting, at instructors'

prices.Dpnci"" at instructers prices.Washing, per term) .

_?>

Bedding, tlfurnisiied) per (errfi 3 00For the convenience of such as may not know Mr.nHd

Ms. D die folowiug references arc given.REFERENCES.

Horn Stevenson Archer, Hon. James Carroll," Richard 11 Magruder, J. Meredith Esq.?' John Purviance, Samuel Moale, Esq." Nicholas Brice, J. Glenn, Esq.

Alexander N'isbet, D. Sewart.lEsq.\v G D Worth!ngton, S. I. Denaldson, EsqClement Horsey, C. F. Mayer, Esq.Louis McLane, John Scott, Esq.

Rev. Dr. Wyalt, Dr Potter,

Rev. Dr. llenshaw, Dr. Alexander,Rev. Dr. Johns, Dr.T. L.Bond,Rev. John M Duncan, Dr. 11. 8. Sieuart,Jolin McKun, Jr. Esq Dr. Mackenzie,Win Frick, Esq J. 8. GiUings, Esq.Hugh W Evans, Esq James swan, Esq,

P E Thomas, Esq Samuel Smith, Esq

James Howard, Esq John Gibson, Esq.

Jacob G Davics, Esq John Me lavish, Esq.J sac oh W Patterson, Esq John Prentiss, Esq

Jeseoh King. Esq James VV McCulloch, Esq

Samuel Jones, Esq J I Donaldson, Esqh,

John Gordon, Esq Fielding Lucas, Jr.Jeremiah lloliman, Esq Jnsepli Gushing, Esq

- au 4 dtf -

milK Ml HSCRIBKR ofiem to Ins friends mid

JI die public in general at his Lumber Yard on the

Falls, lielow Pratt street Bridge,?(Office, head UnionDock,) a large and general assortinentof seasoned Lum-

fcer, such as Funnel, Common, Select CullmgH, Joist,Rafters, Shingles, Laths, N. Carolina and k. 8. r loor-

jug, withevery other article necessary to make a goodassortment. A quantity of Ark Logs, and also Artplank, willhe sold at reduced prices, as I have a largejiuantity OH hand. Allthose who buy for cash may ex-

liberal discount. 1). E. THOMAS.

| JEWELRY, FANCY GOODS, AC. &C

CANFIELDA BROTHER.South, cast corner of Market and Charles struts,

BALTIMORE,IMPORTERS AND DEALERS IN

WATCHES, CLOCKS, JEWELRY, SILVER ANDPLATED WARE, MILITARYGOODS, &e.

OFFER at Wholesale and retail, a complete as-sortment of poods in their line. Their facilities foi

obtaining goods by direct importation, and from theprincipal Manufactories, are such as to afford them evcry advantage. Among the leading articles of their as-sortment are the following:

WATCHES ANDJEWELRY.Gold Levers, of M. J. Tobias, Jehnsoo, Rebmscn,

Hzyrison and other makers.Gold Anchor Levers, do withindependent seconds,Gold Lepines and Vertical Watches,Silver Levers and Lepines,Silver and gilt Watches?suit hie fierce country

trade,Gilt, Alabaster, Ebony & New Kagland oloefc*

time pieces,Ladies gold chains,Gold guard and Fob chainsSeals and Keys, Watch Hoeke,Mmature Cases, Lockets,Gold ear rmgs and pins, in set*,Diamond, Ruby, Einera!d, Peul, Mosaic.Oomeo, fin

amclled and gold breast piss.Dofinger rings,Pearl sets complete,Gold Thimbles, Pencil eases,Spectacles, and every variety of Gold Jewelry?als

a large assortment of common Jewelry?soitable, fcountry trade.

MILITARY.United States Army and Navy Swords,Gilland Plated Sabre, Cut and Thrart Rapier de.Fencing foils, masks epaulettesWings, sashes, plumes, aguUattee,Sword belts, tassels, stars,Hat and cap Trimmings,Caps furnished to order, and truaaed,Gold and silver lace,Cord, thread spangles, bullion, &cEagles, plume sockets, ball battona,Army, navy and other military ballot*Plumes of all descriptions,Pocket, Holsters, Travelling and rifle pbrtoleDirks, game bags, powder flasks,Shot pouches, percussion caps,Gun waddms, fee.

BRONZED GOODS, LAMPS, lie.Bronzed and gilt asiral< mantle aud nuspandin

lamps,Girondoles, candlebras, eandlashcks,Brackets, inkstands, taper stands,Card vases, Thermometers, fee.

CUTLERY.Table and pocket cutlery,Razors, scissors, fee., lie.

SILVER, PLATED & BRTTTANIA WARE.Silver spoons, forks, ladles,Butter knives, sugar tongs,

. Halthuoons, fee.*

Plated Bread and cake kaskete,Wafers, castors, candktshcks,Tea'and coffee urns, epergncw,Snuffers and Trays,Bottle stands,Cups, goblets, tankards, fee. for eoomuunon service,Plated tea and coffee sets complete, five and six |pie- I

ces,Brittania ware, in sets.

FANCY G QODtf.Writing desks, dressing cases,\Vork boxes, snuff boxes, card oases,Segar cases, spectacles, coral,Razor straps, tooth orushes, parses,

. Chessmen, back gammon boards,Dice, pocket books, wallets,Morocco Miniature cases.Musical boxes,opera glasses, blackleg,Elides, Head bands aud oruaineote,Purse clasps, shoe buckles,Decanter Labels.Pencil cases, fee. fee.Military companies furnished with equipments at

short notice.Watches repaired and warranted. Watch tools and

materials for sale.

ORDERS from tVe country promtly attended to.

WM. If. HARRISON'S*

PERIODICAL. ESTABLISHMENT,A". Gay street, near Fayette sd.. Bait.

CHAMBERS' EDINBURGH JOURNALissued Monthly?consisting of original Essays, Tales ofReal Life; Scientific information; Biogrnphica sketches,fee.?Terms $2 25 or 18$ ets. per month.

THE LONDON PENNY MAGAZlNE?is-sued monthly, imported edition?with beautitul woodcuts ?$3 per annum.

AMERICAN REPOSITORY OF ARTSAND SCIENCES?Edited by James Mapes, Esq.?fli per annum.

THE KNICKERBOCKER?a N. Y. Monthly Magazine?ss per annum.

THE LADY'S BOOK?Edited by Mrs. S(gourncy, Mrs. Sarah E. Hale, & Louis A. Godev?eribelisbed with Steel Plates, Colored Fashions. Music fee.Terms $3 per annum oi 25 cents each No., on '.ivery.

BURTON'S GENTLEMAN'S MAGAZINEAMD LITERARY REVlEW?embellished withspirn-pcr annum 0r25 cents monthly.

THE LADIES' COMPANION?Edited byMrs. .Stephens, Mrs. Osgood & N. M. Snowden?cmbellislied withsplendid Steel Engravings, quarterly Fashions, Embroidery, Music, fee. Terms #3 per annumor 25 cents monthly.

THE CASKET?Monthly; Terms $3 per annumor 25 cents monthly,

N. B.?The above valuable and cheap Periodicals areDELIVERED MONTHLY AT YOUR RESIDENCE FREE OFPOSTAGE and mailed to any part ofthe United States.

Address WILLIAMN. HARRISON,Literary Rooms, No. 28th North Gay Street,

dtf Near Fayette street, Baltimore, Md

WARRANTED to be a perfect and permanencure?for sale by

P. S. CHAPPELL, Druggist,Octd.fltUd No. 70 Baltimore stecrt.

I HOTCxT'rtjfECETABLE

PREPARED BY JACOB HUUCK, Baltimore,

FOR the cure of the following disease: TumorsRheumatism, Gout, Pals,, Ring Wound, lich.Ciiil

Mains, Frost Bites, Mumps, Stiffness of the Jc'sn,Cramps, Burns, Scalds, and aH kinds of Swelliu,, at

tended with pain.{jrj-ThcLINIMENT can be obtained til HOUOv tl

LABORATORY, South Charles, uear Market slidwith proper directions for using. Price 5b cents,

ma 13?6 in

OLIVER PARKER. CORNER OF CALvert and Lombard streets, offers for sale?-

-500 bundles American and 10 casks Sheet ZincEnglish Sheet Iron 4000 lbs. Lead Pipe

50 packs Russia do 200 bundles Iron Wire25 ions beet Amerioan 6 tons Spelter

Boiler Iron lb tons hooped Rod Iron400 pigs Lead lb do Band & Scroll do100 boxes Tin Plates lb do Scotch Pig Iron

100 pigs lhinca Tin English Blistered and Cast150 do Cornwall do Steel

With an extensive assortment of Stoves, ships bambooses, Ac, Ac 86 **

FRESH INSPECTED HERRINGS-800barrels Susquehanna Herrings?now inspecting

for sale lowfrom the wharf. SELLM ANA CROOK,n U 4, Corner ol South A Pratt sts

"power is always stealing from the MANY TO THE FEW."

BALTIMORE, TUESDAY MORWIAfi, DECEMBER 13, 184©.

THE PILOT.REPORT FROM THE SECRETARY OF

THE TREASURY ON THE STATE OFTHE FINANCES.

Concluded.VII. Itis proper to advert next to the best

mode of avoiding any inequality between theanticipated receipts and expenditures, either in1841 or 1842.

It lias already been shewn that the wholeamount of receipts in 1841 will probably be suf-ficient to discharge all ordinary expenditures,and those parts of the outstanding debt, fundedor unfunded, which may become due. But thepreservation of a suitable balance in the Treas-ury may require mere than will probably beleltafter satisfying other purposes. The raising ofanysum for that object in 1841, could, however, beobviated by authorising a contract to be made,under proper restrictions, extending the period

I of payment for a portion of the temporary lia-bilities falling due in that year. Yet, in theopinion of the undersigned, the best mode ofproviding for this case would be, without eitheran extension of this kind, or a loan, or a furtherissue of Treasury notes, or a change in the tar-iff; but merely by lessening the appropriationsfor the service of 1841 below the estimates, orpassing such declaratory clauses, as to the pres-ent tariff, and such acts as to the public lands,as have heretofore been urged on the considera-tion of Congress.

The arguments infavor of some further dimi-

nution in ourexpenditures, and the general itemsin which the reduction is considered most com-patible with the public interests, were so fullyexhibited in the last two annual reports as to

render a repetition of them unnecessary.It was then believed that the laws could be

altered so as to admit of safely curtailing the ap-propriations at once, to such an extent, that the

expenditures need not exceed, in the aggregate,seventeen or eighteen millions yearly. Aftermore of the pensions terminate, and the removalof the Indians is completed, they could be con-tracted to even less than that amount. Such areduction as is first adverted to seems, therefore,proper to be adopted now, since it could be ef-fected without the probability of injury to anyuseful national establishments, would promotepublic frugality, and supersede the necessityeither of higher tariffs, direct taxes, or perma-nent debts.

Ifthat be not done, the secondary measuresbefore suggested, snch as a declaratory act to en-force the present tariff, a suitable modificationof the drawbacks and bounties; and the passageof bills graduating the price of public lands, aswell as creating some new districts for the saleofthem, would be likely, if taking effect early,to yield a suitable supply in the course of theyear.

It will be observed, however, that though,under either of these arrangements, enough mightbe obtained within the whole of 1841 for theobjects contemplated, yet not a due or sufficientproportion in the first quarter; because by thattime all the measures are not likely to go intofull operation, nor much of the anticipated in-crease to happen in the actual receipts of dutiesunder existing laws. Unusually heavy expen-ses will also fall on that quarter in the next

year. In addition to a full portion of most of thecurrent expenses, and the whole pension pay-ments for the first half of the year, and one-thirdof a million, or more, for all the annual fishingbounties, there will be imposed on it most of the icharges for the whole year, connected with thesession of Congress and private bills, as well aslarge payments for taking the census, and forthe first instalment of the debt of this District;several of them as early even as the first day ofJanuaty.

From these circumstances, and the considera-tions that all which is due from the banks maynot be then paid, and that the balance in theTreasury, under the policy adopted by Congressof late years, willof necessity be small, whilethe fluctuations and inequalities are very greatbetween the receipts and expenditures in differ-ent portions of the year, to which we are con-stantly exposed from causes that have on for-mer ocoasions been explained at length, it mustbe obvious that entire safely requires a condi-tional power to be seasonably conferred on theExecutive to obtain at any time within 1841such subsidiary means as may be needed for afew months, and as may be sufficient to enablcthe Treasury punctually to discharge, duringthat year, all the liabilities imposed by Con-gress.

There is another contingency under the exist-ing laws, as to duties, which requires attention,with a view to be prqperly prepared for it;though legislation concerning the subject is notnecessary so early as in the other case, becausethe event on which it depend: cannot actuallyhappen till the year 1842.

Thus the progressive reduction of the presenttariff, which has been going on since 1833, w ill,after December, 1841, take effect to a much lar-ger extent than heretofore. Nearly two millionsand a half of dollars will then be deducted atonce.

On the Ist of July afterwards, at least twomillions and a half more of duties will be re-moved; making an aggregate, in six months, ofquite five millions. If the imports then shouldnot differ much from those in 1833, this wouldleave an income from them, not probably ex-ceeding ten or eleven millions of dollars yearly.It willtherefore be necessary to make corres-ponding reductions in the expenditures of 1542,or seasonably provide otherwise in sunc perma-nent manner, to supply any wants likely to hap-pen from this cau3e.

Should Congress conclude that sueh reductionin the expenditures cannot properly be made,andthat the imports for 1842 will not increase be.yond those in 1838, the amount of the deficiency would, in those events,probably differ but lit-tle from five millions. Such a deficiency would,under these circumstances, be likely to becomepermanent, and may be considered the first ofthat character which will occur under the tariffact of 1833.

The idea that sueh a deficiency in time ofpeaceought to be supplied by issues of Treasury notes,or by a loan, has never been entertuincd by theundersigned. Nor can it be countenanced by anvsound principles cither of finance or political e-conomy. The inquiry then recurs, what othermode would be more eligible ? When we pos-sessed an extraordinary surplus, it was consid-ered prudent by Congress to make deposittswith the States, with a view to be returned inan exigency, rather than to invest a portion of Itsafely and productively, so as to be realized insuch an event. It would therefore be consistentwith that arrangement to recall, in 1842, suchpart of the surplus as may be then needed.

That course, however, appears not very like-ly to be adopted, since the former power givento this Department to recall these deposites hasbeen taken away by Congress.

Another practicable mode would be to resortto direct taxes. But this is so unsuited to thegeneral habits, and so uncongenial to the opin-ions of most of our population, that its adoptionis not to be anticipated. Some other perm neritresource must then be looked to. The choicewill probably rest between the large reductionof expenditures, with the other accompanyingmeasures before specified, and some extensivemodification of the present tariff. Explanationshave heretofore been given by the undersignedin favor of the former course; and it would pro-bably prove sufficient to meet the emergency, ifthe reduction be pushed vigorously, and espc-

dally if the imports after 1841 shall exceedthose in 1838 which is regarded as probable.

But Congress inay not coincide with him inopinion on these points,and for covering the con-tingency, may consider the adoption of some permanent change inthe tariff as preferable, and asnot too early at the present session, to give fullnotice of its character, before going into opera-tion, inorder that different interests most affectedby it shall have time to become gradually adjus-ted to its provisions.

In that event, it might be supposed that theundersigned had avoided uue responsibility, and

a timely discharge of duty, if he were not pre-pared to offer some views concerning the details,as w'ell as general principles, which he deemsapplicable te such a change. He has thereforeexamined the subject, and is ready to presentthe result at any moment cither House of Con-gress shall express a wish to that effect. Buthe refrains from submitting them without a spe-cial request, because some doubt exists, undercircumstances which can be properly appreciated, as to the delicacy of his discussing a msa-sure at this time, which the Legislature maynot consider it necessary to act on till a newCongress assembles.

VIII. The mode of keeping the public moneyrecently established by Congress, has thus faranswered the expectations of this Department.

The numerous labors, perplexities, and de-lays of putting a new system into operation,hare been mostly overcome, and ue losses what-ever are known to have occurred under it.

?Some of the provisions in the law are deemedobjectionable in their details, and are respect-fully recommended to Congress for revision.?But they are not supposed to affect in the slight-est degree any principle involved intbe measure.

Thus, the ordinary clerks authorised are nu-merous enough, yet a principal one is needed atNew York city, with such compensation as isusual at a place of so large and important busi-ness.

OB full inquiry, it has been found also thatno site could probably be purchased for the erec-tion of an office at St. Louis, which would bemoie suitable than a lot now owned by the U.States; and it may be, under a further examina-

tion which is in progress, that no new buildingcauld be erected on that site, which would provemore economical and convenient, than one whichcan be purchased alrea Iv erected. A suitablechange in the appropriation on that subject istherefore respectfully recommended.

A provision is needed likewise in case of va-cancies, from any cause whatever, in the officesof receivers general and treasurers. One hasformerly been asked inrelation to collectors ofcustoms, in case of removals and expirations ofthe terms of office, to prevent an interregnum inthe discharge of the duties. This might proper-ly be adopted as to them, and extended to re-ceivers general and the Treasurer of the UnitedStates, as well gs of tbe Mint and its branches,in all instances whatever of vacancy or tempo-rary inabilityof the principal. Perhaps the leastobjectionable mode to effect this object wouldbe, to direct that the chief clerk of all these of-ficers should, in such cases, and where no oth-er legal provisions now exists, be authorizedand required to discharge these duties, at the riskand under the responsibility of the principal andhis securities, tillthe vacancy is filled, or thedisability removed.

In yonsequence of some defects in the phrase-ology of the penal parts of the act, a new clauseextending them to all disbursing officers of even-character under the General Government would ibe judicious. A further provision also, respect-ing the places of depesite, by disbursing officers,of money net in the Treasury,but drawn out andput into their hands for making- payments, ap-pears necessary.

The keeping of such money is now regulatedby the ast of 3d of March, 1809; and if it is in-

tended t bring it within the operation of melate lawoas to money in the Treasury, it seeth?proper to do so by an explicit enactment.

The section requiring disbursing officers tosell their drafts for specie alone, though certainproportions of paper are allowed to he receivedfor all public dues, appears not to be in symme-try with those other provisions. The general in-fluence of the present system is believed to havebeen thus far salutary. The true standard ofvalue has been rendered more familiar, confi-dence has been increased in its stability, priceshave gradually risen, business improved, andexchanges altered greatly fur the better.

If something has been or may be lost in con-venience, (which is not unlikely ) by the in-creasing disuse of a paper currency for publicpayments, much more will probably be gainedby the circumstances before enumerated, as wellas by the greater seeurity in the use of specie,the more stable value imparted by the presentsystem to property and labor, and the strongcheck established by it, not only against defal-cations, but against bank expansions, excessivespeculations, and commercial fluctuations.

Even any inconvenience attending this changein tbe currency used, if found particularly em-barrassing can be overcome hereafter, and thesystem still maintained, should Congress feeldisposed to adopt the measure which was sug-gested for that purpose by the undersigned inSeptember, 1837.

Such a measure would often furnish every ad-vantage of a circulating medium, easy of trans-portation, of the highest psssible credit, and atthe same time requiring an equal amount ofspecie to be employed, (though in deposite.) andwithout subjecting any of the fiscal affairs of theGovernment to that legal dependence en corpo-rations lor their management, which is so objec-tionable in many respects, as never to have beenattempted in the management of any of its otheraflairs, civil or military.

The topics of the condition of the banksof the Union ; the state of the currency;the proper places of <le msite for the publicfunds, and other matters immediately connectedwith them have engrossed a considerable portionof the annual reports from this Department forseveral years.

Hut the keeping of the monev in the Treasurybeing .-row separated from the banks, and the kindof money to be received and paid out fixed by newlegal provisions, it is not considered material at

this time further to discuss these matters, thanto submit tile general remarks which will befound at lie close of this communication.

IX. Some miscellaneous topics conne ted withthe finances deserve a brief notice.

The various measures heretofore recommend-ed to Congress by the undersigned, and whichhave not yet been finally acted on, are again re-spectfully recalled to its attention.

Without recapitulating Ihe ill,itwill be found,on a re'erence to former reports, that many ofthe subjects possess much importance in a fiscalview, and every year's experience has strength-ened the conviction ofthe usefulness of early ac-tion upon them.

It affords me pleasure t. state that since thelast session the Neapolitan Government, under,is treaty of indemnity, has paid promptly ano-ther instalment, which this Department has hcenenabled t have remitted home early, and distri-buted among the claimants.

The situation of the General Land Office, andits operations within the year, will be submit-ted separately in a few days.

Six old land districts have been recently dis-continued, under the act of June 12, 184 . It isbelieved that some others might economicallyand usefully bfc abolished by Congress, thoughnot coining within the provisions of that law.?Such is the office at Greensburg, Louisiana. ?

One district in Indiana, incuding the capital

of the State, is thought, from its peculiar posi-tion, to require special legislation to exempt ittrom the operation ot the late act.

This occasion is taken, also, to renew the re-commendations, before presented by this Depart-ment to Congress and the appropriate commit-tees, for the discontinuance of certain officersnow employed in the collection of duties, whose

further services, it has been believed, could besafely dispensed with, inconsequence of the re-duction in business of late years at the differentplaces where they are stationed. They includesome collectors and naval officers, and survey-ors, amounting in all to eighteen, but whose offi-

ces cannot be abolished without new legisla-tion.

All the subordinate custom house officers,which it is competent for this Department, with-out such legislation, to dispense with, and whosesituations was in other respects similar, have al-

ready been discontinued including within twoyears, more than fiftyofficers, and, besides those,five vessels and boats, with nearly one hundredmen, in the cutter service. In about forty othercases, the compensation of officers and light house

keepers has been reduced.X. In closing this last annual report of the

undersigned, it may be expected that he wouldadvert, for a moment, to the general characterof some of our financial operations during theperiod of his connection with the Treasury De-partment.

Though employed in different Executive of-fices nearly ten years, he has been connectedwith the Treasury only from six to seven ofthem.

During {this term there has occurred much toevince the great fiscal power, as well as pros-perity of the Union. Some reverses have, attimes, overtaken the rashness displayed by partsof the community in certain branches ef busi-ness, and have extended their adverse influencesto the revenue dependent upon them. But the

period and the country, as a whole, have beenalmost unexampled in prosperous devcloperaents.

Thus, in respect to our receipts. Notwith-standing the unusual revulsions in imports ontwo occasions, so sensibly lessening the revenue;notwithstanding any lasses sustained in thosecrises, by the Government, through officers,banks, or merchants; and notwithstanding thebiennial reduction in the duties, which has bylaw been constantly going en, as well as theremission of several millions to rail road corpo-rations, and under new judicial constructions;yet our condition has been so flourishing, as toyield a revenue during that time sufficient, afterall those deductions, to accomplish the followingimportant results. It has enabled the Treasuryto meet the current expenditures of the Govern-ment, as well as the extraordinary ones by In-dian wars, treaties, and other costly measures,and, without imposing any new taxes, or highertariff, and without any new funded debt what-ever, but extinguishing considerable remains olthe old one, and paying the interest on that as-sumed for this District, to save the unprece-dented surplus of more than twenty-eight mil-lions of dollars, and deposite the same with theStates for safe keeping till needed by the Gene-ral Government.

Th# only permanent aid in effecting this, be-

yond the receipts from ordinary sources, hasbeen the debt due from the United States Bank,of about eight millions, and the Treasury notesnow outstanding, equal to nearly four and a halfmillions. But during that period, a sum nutfar from the first amount has been applied to thedischarge of the principal and interest of theold funded debt; so (hat, towards the paymentof all other expenses, only between four and

five millions, beyond what was temporary, andwhat has already been refunded or adjusted,have been received from aHy extraneous sourcewhatever.

It follows, therefore, that the current reven-ue, notwithstanding all reductions, has beenadequate to defray both the ordinary and extra-ordinary demands, and, after taking from whati6deposited with (he States, sufficient 'oextin-guish every kind of indebtedness created onaccount of the General Government during thesame period, to leave on hand the large balanceof nearly twenty four millions.

It is true that the available sums in the Trea-sury at the commencement and the close of theperiod in question willprobably prove differentin amount; but if made equal, a surplus wouldstill be left, which is likely to exceed seventeenor eighteen millions of dollars.

Beside this recorded evidence of the prosperi -

ty of the country and the fiscal ability ot theGeneral Government in those years, it is grati-fying,amidst many misapprehensions concerningthe subject,to reflect on another circumtance con-nccted with our financial operations, which hasalso become matter of history. It is this: Thoughdestitute of the aid of a United States Bank asa fiscal agent during that period, and baffled byvarious unremedied imperfections in the lawsconnected with the finances, as well as embar-rassed by two suspensions of specie paymentsby many of the Btate banks?one still continu-ing; yet the Treasury has been able to make itsvast collections, transfers, and payments, withpromptitude, and in most cases with specie orits equivalent.

Some correct judgment can be formed of theextent and difficulty of these operations, whenit is recollected that the whole sums which havethus been collected,without deducting fractionsadded to those sums which have been paid ov-er chiefly by another class of officers, have ex- 'ceeded the extraordinary aggregate of $360,-000,000, and been dispersed over a territory otnearly two million square miles in extent. Itis,moreover, ascertained that the whole losseswithin the same time by defaults, large andsmall, and in all kinds of offices, will probablynot equal half of oue percent on that amount;and however official delinquencies may, insome cases, have inevitably been aggravated bythe unprecedented speculations of the times,and by great revulsions and failures amongbanks and individuals, those losses will not beone-fourth so large,in proportion to the amountscollected and pa d, as in seme previous terms,when the system under a United States Bankwas in full operation.

A few words may be proper as to (he ex-penditures duriag th# same period. Thoughthey were of necessity augmented by some ofthe circumstances before mentioned,two Indiantreaties only, out of a large number, having al-ready involved us in the expense of nearlytwenty three millions of dollars; yet the aggre-gate of all has been much reduced since the in-fluences of those causes and the impulses of anoverflowing Treasury have diminished. Theexpenditures have "fallen yearly since, 1837,till they are now only twentv-two and a halfmillions independent of any debt and trusts,and are supposed to be in progress to a stilllower amount.

The undersigned has earnestly urged a morerapid reduction. He has considered the greatsafe-guard against a too spleitdid central gov-erruent, which would constantly threaten toovershadow all State independence, and attractthe ambition of most of the friends of StateRights from humbler paths of frugality andprinciple into the dazzling vortex of higherpatronage, honors, and emoluments. Whilethe stimulants to excesses shall continue to lessen, nothing will be necessary to insure thefurther success of an economical policy, butperseverance in retrenchments, wherever theyare practicable without injury to the public

VOL. 1...JV0. 209.

interests. The removals of Indians beingmostly finished, and the chief cause of frontierwars extinguished, unless new objects of ex-penditure be selected, or a great enlargementgiven to some already existing, the wholeamount must of necessity, contract hereaftervery rapidly. The same'result will be furtherpromoted by the deaths of pensioners, increas-ing through advanced age, and the completionof many public works as by persisting in afirm policy to avoid the wasteful expense ofunnecessary foreign collisions, and to refrainfrom those lavish expenditures for certaindomestic objects, over which the jurisdictionofthe General Government is often questiona-ble, and which always opens the widest doorto extravagance, favoritism, and corruption.

One of the greatest evils to the public ser-vice, as well as to the security of private bu-siness, during a part of the above period, hasconsisted in the fluctuations to which both havebeen subjected.

With only a single year intervening, andwithout any material change in the tariff, orany whatever in the price of the public lands,we have seen the revenue from ordinary sourcessuddenly vary irom nearly fifty millions an-nually to eighteen; and, on two occasions since,vibrate to the extraordinary extent of yearlyeight and eleven millions.

The transactions of individuals upon whichour revenue depends, must, of course, haveundergone an unusual change at the sametime.

The imports fell within two years, in thecase first referred to, from near one hundred. and ninety millions to one hundred and four-, teen; and in the single year just passed fell. almost sixty millions. Such inflations andi contractions must be destructive of ali con-. fidence in calculations for the future, while thei causes of them shall continue to operate unre-

medied.What were those causes?They will be found to have been chiefly con \u25a0

; nected with the abuses ofbanking. On the oc-casion first referred to, they were the supera-bundance of a fictitious medium of circulation,with the attendant overtrading and specula-tions in 1836, and the consequent suspension*of specie payment in 1837, as well as the dis-asters and scarcity of any medium till th lat-

; ter part of A. D. 1838. Then another expan-. sion commenced, extending into 1839, and ac-

. comnanied by another increase in imports ofnearly fifty millions, which ended again in thecontractions by banks, suspensions, and com-mercial reverses, which have suddenly reducedthe imports of 1840 more than one-third, andin many places augmented seriously the embar-rassments before existing from similar vacilla-tions in the paper currency.

How far some imprudences abroad, at thesame time, similar to these, though in a coun-try enjoying any advantages which can resultfrom a National Bank, may have augmentedthe evils here, by means of the intimate mon-eyed relations between us, need not now bediscussed, though probably their influence waslarge and unfavorable.

The causes first named were, likewise, inj. full operation here in 1816 and 1817, and were

succeeded by many of the same deplorable con-, sequences in 1819 and 1820. One followed; the other as inevitably as the ebb of the tide' succeeds its flood.

The great principles of trade can never belong violated with impunity; and any fictitiousor urinature I excess of credit soon ends in re-vulsions, as the essence of legitimate commerceconsists in an exchange of values for eachother, or of values for what truly representsvalues, and can be readily converted intothem.

All business otherwise becoms a mere gameof hazard; speculation must enter into every af-fair of life; riches and poverty will be depen-dent on the merest bubbles: pricas will changeoftener than the wind; regularity in receipt andexpenditures be impossible; estimates lor thefuture, whether in public or private matters,become were conjectures; tariffs require year-ly alteration to meet the fluctuations of "busi-ness; and the community be kept under theconstant excitement and depression of the hotand cold fits of a violent fever.

The first remedy sought in 1816 by the es-tablishment of a National Bank, was suppos-ed, during a lew ensuing years, to have aggra-

; vated those evils; and the next remedy, adopt-. Ed in 1824 by a high tariff, did not prevent thei low prices and bankruptsies of 1825, whichi covered the country wi h wrecks and ruini Undoubtedly, the best relief on such occa-

sions is to be (ound in removing the cause ofthe disease. So far as regards the General Gov-ernment. this was attempted in 1537, andsince, by gradually withdrawing from the useof banks and their paperin its fiscal operations,so as neither to stimulate nor contract their byissues byotnerinfluences than ordinary business-urging on those, who might find their employ-ment sometimes useful, a closer regard in do-ing it, to the safe and sober influences of theuniversal laws of trade, as well as an inflexibleadherence to the constitutional standard of val-ue.

While the General Government shall contin-ue to puisue such course, it will mitigate andcheck the evils which others produce,and whichthey alone under the limitations in the Consti-tution, are able entirely to remove. At allevents, it will faithfullyperform a momentousduty and exhibit a useful example for imita-tion.

In a period of peace and comparative exemp-tion from public debt, as well as from seriousdifficulty in financial operations, it would hard-ly seem proper to attempt more by assump-tions of doubtful powers, and by forced con-struction in favor of measures by no means cer-tain, ifadopted, not to aggravate rather thandiminish existing evils and not to produceothers of a character still more dangerous.?Much less can it be considered respectful eitherto State rrghts or the people, and certainly notcompetent, in the opinion of the undersignedto exercise such powers by creating moneyedcorporations among them, which many of tbeinumber have repeatedly denounced as unconrstitutional, and the authority to establish whichwas originally refused rather than confined tothe General Government by the people and theStates that formed it. But some other powersexpressly conferred can, without question beexercised further than has yet been done byCongress, and in such a manner as to producevery beneficial consequences upon the curren-cy. Still, it is hoped they will never be push-ed so as to trespass on ground really doubtfulunder the Constitution, and prevent the Statesfrom continuing to exercise all the legitimateauthority they now possess as to banks anddebts, however much it may be regretted thatpublic opinion has not yet run with morestrength against the abases of both, and led totheir prompt con?ction. It is not proposed atthis time to go into the consideration offartherdetails on these points. But the danger to beguarded against cow, seems to be rather of anopposite character from that of overaction bythe General Government in the exercise of itsexpress powers. On the contrary, apprehen-'sions exist that itmay not continue firm in the \u25a0