Provision should be made by Congress at its present session to supply the deficiency. In what manner shall it be done? A loan for this purpose is not deemed advisable, in view of the addition already made to the public debt. A revision of the tariff of 1857, and the imposition of additional duties, is the only remedy, unless Congress shall take some action to relieve the treasury from a portion of the expenditures it is now required to meet.

In revising the tariff, the same principles should direct and control the action of Congress that would be considered in the adoption of an original act.

I do not deem it proper to enter into any extended discussion of the theoretic principles on which a tariff act should be framed.

They may be briefly stated. Such duties should be laid as will produce the required revenue, by imposing on the people at large the smallest and the most equal burdens.

It is obvious that this is most effectually done by taxing, in preference to others, such articles as are not produced in this country; and among articles produced here, those in which the home product bears the least proportion to the quantity imported are the fittest for taxation. The reason is, that in taxing articles not made in the country the whole sum taken from the consumer goes into the treasury, while in the other class the consumer pays the enhanced value not only on the quantity imported, but on the quantity made at home. This last tax is paid not to the treasury, but to the manufacturer, thereby rendering such a duty not only more burdensome, but grossly unequal; the home producer being benefited at the expense of the consumer.

The public debt on the 1st of July, 1857, was $29,060,386 90, as stated in my last report. During the last fiscal year there was paid of that debt the sum of $3,904,409 24, leaving the sum of $25,155,977 66 outstanding on the 1st of July, 1858. To this amount must be added the sum of $10,000,000, negotiated during the present fiscal year, of the loan authorized by act of June 14th, 1858. There was issued under the provisions of the act of December 23d, 1857, during the last fiscal year, treasury notes to the amount of $23,716,300, of which there was redeemed, and the Department informed thereof, during the same period, $3,961,500, leaving the sum of $19,754,800 outstanding on the 1st of July, 1858. The details are shown by statements marked 1 and 5. In estimating the receipts and expenditures for the present and next fiscal years, it is not contemplated to redeem the outstanding treasury notes. As these notes will become due and payable during the next fiscal year, some provision should be made to meet them.

RICHMOND BANKS.

The official statement of the banks in Richmond for the quarter ending September 30, 1858, shows their condition on that day to be as follows:

Total

Specie. Circulation. Deposits. $98,187 $85,900 $771,819 854,500 1,721,811 155,292 226,094 898,255 748,300 1,231,778 69,083 216,469 560,452 *412,000

$2,901,050 $4,773,398 $322,562 $528,263 $2,230,526

This amount paid in-authorized capital two millions.

UNITED STATES MINT.

The Mint returns of the United States were formerly made up to the close of the fiscal year, but an act of Congress, in 1857, directed that the returns should be made to correspond with the fiscal year, ending June 30th. The returns from 1793 to 1847, were given February, 1849, volume xx., page 200, and the continuation down to the close of 1856, was contained in volume xxxvii., page 52. The six months, January 1st to July 1st, 1858, in volume xxxviii., page 371. The returns for the whole fiscal year, to July 1st, 1858, are now at hand. From these we take the following figures:—

DEPOSITS OF GOLD AT THE UNITED STATES MINT AND BRANCHES.

Double eagles... 1,401,944 $28,038,880 00 Half dollars... 8,860,000 $4,480,000 00

Fine bars
Unparted bars..

230,361

515,632 50
230,361 00 Fine bars.......
7,105 21,819,779 14

Three-c't pieces..

1,266,000

37,980 00

900

192,557 77

488 816,295 65 Total silver.... 31,005,900 $8,233,287 77

COPPER.

Total gold..... 2,085,755 $52,889,800 29

Cents.........

23,400,000 $234,000 00

The director remarks in relation to these operations :-
:-

The amount of gold of domestic production deposited during the year was $40.977.168 55; derived as follows:-from California, $40,591,140 88; from Oregon, $9,181; and from the Atlantic States, $376,846 67.

The deposits of Spanish and Mexican fractions of the dollar at the principal mint, the branch mint at New Orleans, and the Assay-office at New York, from the passage of the act of February 21st, 1857, entitled "An Act relating to foreign coins and to the coinage of cents at the Mint of the United States," to the 30th of June, 1858, have amounted to $1,072,434; of this amount the sum of $293,246 was deposited at the principal mint for exchange for cents coined under the act above cited.

Within the last year some new varieties of bullion have been brought to our notice. The gold of the Frazer River region, of which, however, but little has reached us, is one of these varieties. It is found to be considerably alloyed with silver-more so than the average of California gold. With our present scanty knowledge we cannot rate it higher than 840 thousandths fine, on the average, which, allowing for the silver, would be $17 50 per ounce after melting.

Another variety which has been brought to our attention is the gold from Platte River, of which we have had but one sample. This was of high fineness, equal to that of Australia, and a little superior to that which was formerly received from Santa Fe, through the overland traders. The sample alluded to gave a fineness of 964 thousandths; equal to $19 92 per ounce, after melting. A deduction of from two to four per cent upon the values above stated will give a proximate valuation of native unmelted grains, free from the gangue or stony substance.

The Mint has lately received a deposit of Chinese stamped ingots of gold. They were sufficiently uniform in weight and fineness to induce the belief that they were intended to be of a definite value for the purposes of currency. In fact, the gold and silver currency of China is always in stamped bars or ingots, and never in coined pieces, in the sense commonly understood in other parts of the world, except so far as Spanish and Mexican dollars are used, and these receive a Chinese stamp as they pass from one merchant to another. The gold ingots just mentioned were of the fineness of 966 thousandths, which probably is considered "sycee," or fine gold, in a commercial way. the value per ounce troy of which would be $19 97. The average weight was eleven ounces eighty-hundredths (11.80) nearly, and the average value $235 50, without the mint deduction for coinage. In Chinese language they were pieces of ten taels each, making the golden tael $23 55. These particulars may be interesting to commercial men, and to the public, especially if it should be one of the effects of the recent treaty of our government with China to cause a current of gold in this direction, in payment for our manufactured exports. This was the first opportunity we have had of testing Chinese gold bars.

The production of silver from the mines of Lake Superior increases from year to year, but usually with the disadvantage of a large alloy with copper, so that the latter metal has to be sacrificed by the owner to render the silver available. The working of silver ores in other regions, however, has usually much greater difficulty and cost to contend with. Heretofore, the yield of silver from Lake Superior was too inconsiderable to require a place in the statistical tables, but in view of the increased value of the deposits from thence during the last year, they will be found stated in this report, and will hereafter be regularly noticed. For various reasons, growing out of production and trade, we now receive more of the Mexican dollars than for some years past. And the removal of the

restrictions which formerly prohibited the exportation, from that country, of silver bars and amalgams, has much increased the supply of silver bullion.

Much

of it finds its way from the Mexican States, through Matamoras, to New Orleans; and I have reason to believe that the supplies from that direction will continue to be large and regular.

STATE TAXES.

State.

$428,600

The following table of State expenses was prepared by Col. JOHN H. Wheeler:

Alabama.

THE DEBT OF NASHVILLE, TENNESSEE.

The city of Nashville, Tennessee, it is said, owes a funded debt of $662,500; a total debt of $805,338. Its means of every description are put down at $841,350; the revenue this year is estimated at $166,130. The liabilities for the present year, exclusive of ordinary expenses, are put down at $154,776, and the ordinary expenses are at least $120,000-so the deficiency at the end of the present fiscal year will be $107,646.

Loans.

CITY WEEKLY BANK RETURNS.

NEW YORK WEEKLY BANK RETURNS.

Average

Actual

Specie. Circulation. Deposits. clearings. deposits. Jan. 2 $98,549,983 $28,561,946 $6,490,403 $78,635,225 $13,601,357 $65,033,867

13

20

9 98,792,757 29,176,838 6,625,464 79,841,362 13,899,078 63,942,284 16 99,473,762 30,211,266 6,349,825 81,790,321 14,066,412 67,728,909 23 101,172,642 30,829,151 6,336,042 82,598,348 13,074,762 69,523,836 30 102,180,089 31,273,023 6,369,678 83,997,081 13,519,330 70,477,751 Feb. 6 103,602,932 30,652,948 6,873,931 86,000,468 15,439,083 70,561,405 13 103,783,306 80,226,275 6,607,271 84,229,492 13,803,583 70,425,909 20 103,706,734 81,416,076 6,542,618 86,778,222 14,769,565 72,003,657 27 103,769,127 31,658,694 6,530,759 87,386,811 15,657,056 71,729,805 March 105,021,863 32,739,731 6,854,624 90,382,446 18,002,665 72,370,781 105,293,631 32,961,076 6,755,958 90,063,432 16,511,506 72,552,926 107,440,350 31,902,656 6,858,852 91,238,505 17,064,588 74,173,917 109,095,412 30,929,472 6,892,231 90,644,098 16,429,056 74,201,709 April 3 110,588,354 81,530,000 7,232,332 93,589,149 17,567,160 76,021,989 10 110,847,617 32,036,436 7,245,809 93,566,100 16,775,287 76,790,863 17 111,341,489 33,196,449 7,190,170 96,448,450 17,329,431 78,121,025 24 111,003,476 34,113,891 7,140,851 95,340,344 16,141,451 79,198,893 May 1 111.868,456 35,064,213 7,431,814 98,438,506 17,875,203 80,563,30$ 8 112,741,955 35,453,146 7,735,056 101,165,806 19,438,661 81,727,146 16 114,199,288 34,780,728 7,502,975 101,884,163 18,284,868 83,599,295 22 115,658,082 84,047,446 7,307,445 101,917,869 17,620,131 84,297,738 29 116,650,943 31,496,144 7,252,616 99,351,901 16,199,657 83,152,244 June 5 116,424,597 32,790,333 7,547,830 101,489,535 17,982,648 83,506,887

27

12 116,022,152 33,367,253 7,367,725 100,787,073 16,503,899 84,283,194 19 117,797,547 32,396,456 7,297,631 102,149,470 16,818,521 85,280,987 26 118,823,401 31,948,089 7,215,689 101,961,682 15,825,983 86,135,699 July 3 119,812,407 33,830,232 7,458,190 106,803,210 17,267,927 89,535,283 10 118,863,937 34,705,593 7,571,373 106,420,723 18,168,757 88,260,956 17 119,164,222 35,328,184 7,846,946 107,101,061 17,046,961 90,054,100 24 118,946,482 35,315,243 7,351,065 105,490,896 15,365,206 90,105,690 31 119,850,456 35,712,107 7,408,365 106,456,030 15,310,157 91,145,873 Aug. 7 120,892,857 35,154,844 7,784,415 107,454,715 17,115,237 90,339,678 14 123,374,459 31,150,472 7,388,739 105,034,769 15,208,690 89,826,082 21 126,368,231 28,349,507 7,480,684 104,609,658 15,449,895 89,159,763 28 126,004,424 27,817,006 7,466,846 103,928,178 16,208.039 87,720,139 Sept. 4 125,885,840 28,048,661 7,748,249 103,347,811 15,414,213 87,933,594 11 125,013,211 28,059,495 7,830,669 102,899,554 15,989,375 86,908,179 18 124,649,018 28,808,068 7,313,695 104,733,688 17,603,982 87,129,706 25 124,118,904 28,625,331 7,864,373 102,429,344 16,347,447 86,081,897 Oct. 3 123,659,697 28,533,785 7,875,750 104,901,563 19,015,193 85,886,370 9 123,599,250 29,170,204 7,980,519 105,565,930 19,175,717 86,390,203 16 124,216,701 28,506,508 7,890,624 106,497,058 19,907,696 86,589,362 23 124,374,222 28,681,429 7,879,024 108,072,518 20,929,351 87,143,167 30 126,093,586 26,707,817 7,822,909 108,801,256 21,494,870 87,306,387 Nov. 6 126,809,492 26,337,855 8,186,953 109,217,448 21,899,507 87,317,941 13 127,027,519 26,039,277 7,975,420 109,238,497 20 125,898,631 26,790,815 27 125,585,698 27,157,731 Dec. 4 126,338,324 27,407,726 11 126,320,129 27,195,522

12.

Loans.

20,715,976 88,542,521

20,127,516 88,045,437

7,860,576 108,172,947
7,652,457 106 599,963 19,866,258 86,733,705
7,837,517 109,342,455 19,797,165 89,541,290
7,750,166 109,354,647 20,372,681 88,981,966

BOSTON BANKS.

Specie.

Circulation. Deposits.

Due Due to banks. from banks.

Jan. 5.... $50,726,800 $5,028,000 $5,416,000 $17,073,800 $3,911,000 $5,732,600 51,221,000 5,449,000 5,938,400 17,226,700 4,368,000 5,969,500 18.... 51,740,926 5,661,216 5,669,028 17,722,553 4,754,006 5,891,800 25.... 51,772,412 6,073,680 5,494,721 18,129,649 3,531,721 1,949,031 Feb. 1.... 51,854,178 6,402,460 5,251,006 18,395,692 5,111,278 5,725,387 8.... 52,011,821 6,872,977 5,498,600 18,602,984 5,317,764 5,756,068